To: Craig K who wrote (2445 ) 5/3/1998 7:45:00 PM From: bullmarket Read Replies (4) | Respond to of 50264
HI CRAIG, I am probably the wrong person to ask re. the technicalities/detailed activities of MMs,/stock market. I try to give an overview of the market/ the trend. Nevertheless, I will try to do my best to answer your questions. I may not be correct or way off base/so if someone knows more about MR. HANGIN LONG's questions (eg. macker, Rico) please help with the answers. Theoretically, if all the shares are in investors hands with NO selling, I would assume then the price has to go UP to the level where selling will occur. Remember, HONEST MMs make their living by the trading activities (they profit from the bid /ask difference). We will then have a new floor of support for the share price. Short term traders may jump in but they will be BUYING, pushing the price up. With NO short selling to cause an ARTIFICIAL depression, the price would have a better chance of staying up till the next piece of news takes it higher. Traders may then get out or stay in for a longer ride (I would bet that more than one DGIV investor initially got into this stock to day trade but have now become long-term investors of the stock after seeing its potential!). Hence, the price should find a higher plateau and will actually be a FAIRER reflection of its fundamentals. I do not know what effect the 4-6 week delay from E-trade would have. However, it is always BETTER LATE THAN NEVER, in my opinion.the worst case scenario is that it will take us that long to effectively take care of the shorts, but if we do not call for the certs, we could NEVER taske care of them . In addition, if the shorts find out tomorrow through their connections that we are calling for the certs, they would not wait too long to cover before getting really CRUSHED! If anyone can think of a REAL downside to calling for our certs, please let us know. Craig, I hope some of these answers are satisfactory. Anyone else who has a better answer, please let us know. Thanks.