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Microcap & Penny Stocks : FAMH - FIRAMADA Staffing Services -- Ignore unavailable to you. Want to Upgrade?

To: Leroyt who wrote (14197)	4/28/1998 4:44:00 PM
From: TraderGreg	Read Replies (1) \| Respond to of 27968

OK, every brokerage firm I have ever called, (Scottsdale, DLJ, Texas Capital, PCFN, NDB, Ameritrad, JB Sutton, Lehmann Bros, do you really want the whole list. Leroy, you got the easy job, find me the one who will allow it(without special favors). I would love to do it. I'll give you the benefit of the doubt. Find me that one. You will be my friend for life. TG

To: Leroyt who wrote (14197)	4/28/1998 4:49:00 PM
From: Buster	Read Replies (2) \| Respond to of 27968

I am on the line with my Schwab broker to see if I would be able to short Famh. It seems to depend on if they have stock in inventory. He is checking right now... Okay, he said that the stock has to be marginable and they would have to have it in inventory. They can go out to other firms for inventory but firms usually do not lend out shares if the price is under $3.00. It doesn't look like I could short Famh through Schwab because they do not have the inventory. He was a bit vague in describing which stocks are marginable. I thought the rule of thumb was $5 stocks are marginable but he said that is not true. I believe that if Schwab had the inventory and I had 100% of the funds to back up the short position Schwab would let me short Famh. Not that I would:) Buster

To: Leroyt who wrote (14197)	4/28/1998 9:42:00 PM
From: Anthony Marks	Read Replies (1) \| Respond to of 27968

Leroy, Trader, buster.. Enjoyed the discussion on shorting BB's. would like to add a couple of things. I don't think shares of FAMH can be borrowed for shorting since the stock is not marginable. This applies to stocks under 5.00. (don't know about the 3.00 thing buster) Normally they are held in a cash account and cannot be loaned by an MM since they are owned outright buy the purchaser. It is my understanding that only shares bought on margin can be loaned. Affirmative Determination means the MM must determine if sufficient shares are available to ensure delivery prior to executing a short sale. I would guess, you would have to find a MM that makes a market in FAMH and has enough shares warehoused from bona fide market making activity. ( Doubtful) MM's who make a market in the stock are exempt from borrowing to short. To provide a liquid market they are allowed to short naked. Check this link. nasdr.com Margin account- I believe the requirement to have a margin account is to insure the short seller qualifies for credit and can cover the "unlimited upside risk" I assume they would give you margin call if the stock doubled in price from the price you sold short at. In a nut shell I agree with trader, I don't think the average investor can short FAMH. AWM