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

To: TraderGreg who wrote (14283)	4/29/1998 11:19:00 AM
From: David A. Irvine	Read Replies (1) \| Respond to of 27968

TraderGreg, You are right, naked shorting could always happen. But requesting your stock certificates will always make a stock harder to short, since there could be a lot of "non-naked" shorting going on, too. Someone (not TG) asked why everyone blames shorting on the reason BB stocks go down. Well, I don't think all stocks are shorted, but a lot are. Requesting your stock certs is one way to help prevent shorting. Why do so may stocks get shorted? Well, how many new companies actually make it big, and how many fail and fade into obscurity? I don't have the numbers in front of me at the moment, but I seem to remember that less than 10% of new companies actually expand and get bigger. So, for a huge brokerage house, it makes sense to short the hell out of everything, since most of the companies you short will never make it and you will never have to cover. I personally think FAMH is one of the few that will make it big. -Dave <<< Unless everybody called their certs, there will always be stock immediately available. Thus, those who short naked, against no borrowed shares, will still do it. These guys don't care where the shares or certs are...they just do it. At least having more in cert form will make it a little harder for them to cover...but everybody has to do it. TG >>>