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Microcap & Penny Stocks : JAWS;A P/E of 2 with 150%/yr Erngs Growth!! -- Ignore unavailable to you. Want to Upgrade?

To: James M. Chittenden who wrote (820)	4/27/1998 3:29:00 AM
From: brodway	Read Replies (1) \| Respond to of 4230

James......glad to hear from you.. There are several questions that you asked, so ill try to tackle them one at a time. 1)Stop Losses. The policy on stop losses is dont ever place one. The reason for this is because mm's play games, as you already know, and therefore can bring a price down far enough to get your stock at that stop loss price. They do this often when they are in need of stock(if theyre are short or looking to load up at cheaper prices). What i suggest, and what most investment advisors suggest to the more aggressive traders is have a "mental" stop loss, where you have a number in your head that when violated, automatically triggers you to call your broker and sell. This often works better then a regular stop loss. It is normal to see a stock dip a few points intraday, and close up for the day or regain most of its early losses, it happens quite often. 2)Borrowing Your Stock from Cash Account. Your broker/manager is absolutely correct. They will never lend out your stock to anyone for any reason if its in your cash account or Type 1 as they call it. The problem is that its not the brokerage firm that lends out the stock, but rather the clearing firm that may clear for them. They are actually the ones in possession of your stock and not your brokerage. Your broker only acts as an agent for transactions. The delivery of stock and cash/margin transactions take place through the clearing agent. (eg Bear Sterns, US Clearing, Pershing, etc. etc.). Many times the clearing firms will go out on a limb for some market makers(for a fee of course), and lend out type 1 stock because they have a good relationship with that mm and knows they can always deliver the stock back when asked. 3) Who is short??? To find out exactly which mm's are short is a tedious and almost an impossible task. The only way to really find out, is to check their true positions. Obviously, we dont have access to those records. One can also estimate that number by going all the way to the beginning of trading and seeing how a mm's position has changed on the DTC forms(those are available for a fee). That, however, is an unbelievably difficult and not fully accurate tool. Believe me, Jim, the company is fully aware that the mm's are short an enormous amount of their stock. When i spoke to Colin last, he was the one who had suggested this, and i assume, therefore, later found it necessary to announce a buyback. I know Colin is really upset about this situation, and will do what ever it takes(as long as it doesnt have a negative impact on the operation of the business) to remedy the situation. I hope this helps a bit, if you have any further questions, ill be more than happy to share my knowledge. Good luck, Brodway. looking for a big week coming up. for now im outa here.