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


To: Craig K who wrote (2445)5/3/1998 7:37:00 PM
From: RocketMan  Read Replies (1) | Respond to of 50264
 
Hangin, these are great questions for bullmarket, and I await his reply. However, let me offer my opinion on one of your questions, and anyone correct me if this is not correct:

"Say for example: All of the shares are in investors hands with no short position.. What is to prevent the price from staying down because noone will sell.. Ask has to move up on volume.Doesn't it??"

If everyone holds their certs, then the bid will have to rise to whatever level it takes to get someone to sell. What is that level? $8? $10? $20? $50? I don't know, but whatever it is, that would be the value of this stock, as driven by market supply and demand. Eventually someone will sell, and they have the freedom to do that at any time, even if they hold the certs.

What we are preventing is not this fair market action, but rather the artificial action caused by MMs who own no shares themselves, but borrow and create shares and then set up their own artificial bids and asks, with no interest in the fair value of our company, but based on trying to make a quick buck.

Hey, not with my shares!

Anyone can correct me if this is incorrect.



To: Craig K who wrote (2445)5/3/1998 7:39:00 PM
From: Secret_Agent_Man  Respond to of 50264
 
Craig, you wrote:Say for example: All of the shares are in investors
hands with no short position.. What is to prevent the
price from staying down because noone will sell.. Ask
has to move up on volume.Doesn't it??

Craig, they will bid this Stock Up until they find a place where someone will be compelled to sell....Not me I'm waiting on My 3:1 or 4:1 Split ad infinitum! and the Second, Third, Fourth and the FIFTH Coming of DGIV



To: Craig K who wrote (2445)5/3/1998 7:44:00 PM
From: MARK C.  Respond to of 50264
 
Craig, When I buy a car I get a car. When I buy a steak dinner i get a steak dinner. AND WHEN I BUY STOCK I WANT WHAT I PAID FOR!!! MARK C.



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.