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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Mark_H who wrote (46121)	4/24/1998 2:20:00 PM
From: Pugs	Read Replies (2) \| Respond to of 55532

Mark, No problem, if a shortseller can shake a position of say 200K shares, for example....he can sell them into the Market, a little at a time, this would slowly bring the price south if there isn't buying to offset it. The drop in price may be enough to shake the nervous or shakey investors. Like at ADVR, they had a squeeze, but the float became diluted, the price dropped and the squeeze was ended. Of course, there is a new squeeze developing at ADVR, IMO. You're right, at RMIL, the float is in NAME FORM, even if Mork gets 200K shares, he'll , IMO, never succeed in shaking shares from RMIL longs, our shares start , at the moment, at $175/share. IMO, this is why Mork wanted to settle for 200K (BTW, Pauly lied when he said 100K), he could cover his illegal short position with 100K, and sell the other 100K into the Market attempting to send the price south and scare investors. Lucky for shareholders GM & RB told him to take a flying leap. Pugs FWIW ABC is short 100,000 shares of XYZ corp - a small, OTC stock trading at $1.875 bid, $2.125 offer. Their month end is "settlement day" - meaning trade day plus three (like when you or I have to pay for the stock we buy) and the date is June 24, 1997 - (making settlement the last day of the month). In order to enhance their balance sheets (which allows them to sell or buy more stock against their net capital) they decide to start hitting (selling) the stock. Here's the way it looks: They enter an order to sell 10,000 shares at the market. The bid was only good for 2000 shares (not surprising since size buying or selling always shrinks the offer or bid size) so the current market then becomes: $1.75 - $2.125 ... until they offer stock at $1.875 - making it $1.75 - $1.875... but not for long.. They enter an order to sell 8000 shares at $1.75 - which was good for 5000 shares this time. Now the market is: $1.625 - $1.875 .. until they offer down to $1.6875.. and it continues: They see on level two (a trading system that shows the depth of an OTC market) that there is two bids at $1.625, but the next level is $1.3125. Ah ha! A good target price. They sell another 5000 shares at $1.625 - each market maker buys 2500 shares and bid down - making the current price $1.3125 - $1.6875... but low and behold: They offer stock at $1.375 - making the price $1.3125 - $1.375.. The company is now short a total of 112,000 shares.. and in one day shows a paper profit of $84,000 - which applies to their month end balance sheets! Do this on a couple of stocks each month and a small BD can end up with several hundred thousand dollars in additional buying power. The only problem is that it is that you and I are the ones who get creamed. I know of one savvy investor who buys the hell out of his small stocks at the end of each month - and is usually able to sell them at a profit the first few days of the month when the same market maker stops LEANING ON (doing the above outlined shenanigans) the stock. So at the end of each trading month, don't panic and assume something is wrong with your small stocks! You are probably witnessing the "MONTH END MANEUVER" !! microcapstocks.com Pugs