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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Mike Farrar who wrote (8210)	5/3/1998 2:37:00 AM
From: Rick Slemmer	Read Replies (1) \| Respond to of 18691

Jeff: Daytraders and SOESers. Whenever the momentum picks up, thousands of daytraders pile on at 1000 (or more) shares each. They get their 1/4 point and dump, only to try it again a few minutes later, sometimes playing the stock the other way. Several times a day is not uncommon. Been there, done that. Good luck! RS

To: Mike Farrar who wrote (8210)	5/3/1998 11:07:00 AM
From: James F. Hopkins	Read Replies (2) \| Respond to of 18691

Jeff; What is happening with KTEL is illegal, BUT there is a loop hole that the fly by night brokers use to get around the law. She has more than 14 times her float shorted. This is a bear trap in the magnitude of the likes I have never seen. The SEC should have moved already to bring this to a halt but they seldom do any thing untill after the fox is finnished raiding the hen house. ------------------------ It looks like to me a bunch of amateur traders , many who think they are smart and take a position of self appointed gurus have never even read the small print of the aggrements they signed with the off the wall brokerage firms. -------------------------- There is a way the fly by night brokers can let you short with out them having to borrow the stock ..keep in mind they can also buy you in if they need to and there is nothing you can do about it..as you were supposed to read that agreement before you signed it, and you also stated you did. In short they let you short "if you don't ask them ( record it if you do ) if they have shares to borrow. ( they most likley don't ) BUT you are supposed to have the shares your self and they have the right to assume you do and that within three days you will be able to produce these shares. --------------------------------- It's much like the same scam use to get around the VET paying the discount points ( front end charge ) on a VA loan. "HE does pay it " but a series of double meaning phrases circumvents the law. ----------------------------------- When you jumb into a situation that is so obiviously being run aginst the law you don't have a leg to stand on when you get took to the cleaners. The brokers have already covered their rear end, also you signed away most of your legal rights and fully agreed to in house arbitration with any disputes. So until the in house arbitration is compleat and you have jump through the endless amount of hoops called for by the arbitration prosess if you take your case to court it will just get thrown out by the judge. ------------------------------ With only a 900K float and over 13 million shares short you have to know this is a scam..but it's a scam that will take advantage of the shorts more than the bulls. This stock could easly go to 100 or better. Forget all the FA and future value it has nothing to do with the price of this stock..the short interest is the key..if I drops back down I may go long..( BUT I WILL NOT LEAVE MY SHARES IN HOUSE NAME ) I know that if I buy any now I will be buying from some one who is shorting..I will insist on my broker to send me the shares..and he must do that if I ask for them. Being I have two brokers I can walk these shares to my AGE account and put them in safe keeping but not in house name, a mear phone call then lets me sell..( or short in a legal way aginst the box ). ------------------------ You have heard the saying ignorance is no excuse for breaking the law..in court that's what you will be up aginst. As if you granted your broker the right to act in good faith that you would be able to furnish the shares in three days, he don't even have to ask you if you have them when you go short. In effect technically you are the one breaking the law when you short this stock without a clear understanding that he has shares for you to borrow ( and you better have that in writing) or your up the creek. Jim -------------------------