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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?


To: Secret_Agent_Man who wrote (2367)5/3/1998 3:26:00 PM
From: bullmarket  Read Replies (1) | Respond to of 50264
 
Dear Byron,
thanks for relaying that post. great reason for demanding stock certificates: it allows our share price to maintain its high value (we will definitely reach this "high" number with the imminent developments) without backsliding by the shorts. We all know that as DGIV (or any other stock) reaches a certain high value following manor news, it will backslide due to a number of factors-profit taking, short selling,etc... if we can ELIMINATE the short sellers, DGIV will not backslide as much (only profit taking would cause the backslide and many INVESTORS may actually sit and wait for the NEXT PIECES of NEWS, knowing this company's potential/ hence profit taking may be quite minimal). Therefore,a higher plateau would be reached without the shorts before the next news carry DGIV to another all-time high.
So, the only downside to asking for the certs ,IMO, is this:
it may make selling more difficult (although it is only an inconvenience, since one can still sell) and make daytrading DGIV harder. To long -term INVESTORS, you have to ask yourselves:
Would you rather have your share price be high and NOT be affected by the shorts and be slightly inconvenient when it comes time to sell your shares. Or do you want to have the convenience but see your portfolio at a lower value??
Another thing, eliminating the shorts should reduce the wild swing in the stock price, which would scare away future investors or tempt those already in DGIV to sell/daytrade the stock. Without the shorts, DGIV stock price should steadily go up, making it more attractive to new investors and induce longs to stay in!!
Just my two cent worth on this issue.
Byron or any one who knows: does it cost the investors anything to ask for the certificates???



To: Secret_Agent_Man who wrote (2367)5/3/1998 4:16:00 PM
From: macker  Read Replies (3) | Respond to of 50264
 
PEOPLE PLEASE READ THIS, THIS COULD PUT THIS SHORT ISSUE TO BED

i just talked with my broker again from A.G. Edwards, he researched this issue for me. heres how it works:
1. shares cannot be margined on a bb

2. starfish was right and wrong, shares in a cash account cannot be borrowed for shorting if they are in the investors name, BUT A LOT OF FIRMS TRY TO REMAIN FLEXIBLE BY NOT AUTOMATICALLY PUTTING SHARES IN YOUR NAME ONCE MOVED TO CASH ACCOUNT, YOU HAVE TO SPECIFICALLY REQUEST THAT THE SHARES BE PUT IN YOUR NAME TO BE ABSOLUTELY GUARANTEED.

3. here is the most important term for everybody no matter what part of the globe you live in: LOCAL SAFE KEEPING

HOW THIS WORKS: all you have to do is call your broker and ask that the shares be moved into local safe keeping, they do not: a. have to be sent to you b. have to be mailed back if sold.

4. the shares are out of the streets and your brokers hands, they will be in you name at your brokers office. ALL IT TAKES IS A PHONE CALL NO OTHER HASSLES.

5. also my broker said that the current short position is 2 million shares predominantly held by 2 mm's. asking for shares to be put into LOCAL SAFE KEEPING will cripples the shorters. it will also make them cover if they dont have enough shares left. this could be particulaly effective with smaller floats and a coalition of effort he said.

6. if anyone noticed i hadnt commited either way and had been asked privately what my stance was, i wanted to check it out for myself, so my choice: YOU WILL SEE A MINIMUM OF 180 THOUSAND SHARES AMONGST FAMILY AND FRIENDS BEING SENT TO LOCAL SAFE KEEPING TOMORROW AT THE BELL.

byron, my deepest apologies for not supporting you on this sooner, i just had to completely research it, you still da man in my book.

macker, still learning

ps. starfish, your efforts are appreciated and thanks for the lesson