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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 (2887)	5/4/1998 5:36:00 PM
From: RocketMan	Respond to of 50264

Craig, see if this makes sense. This is not rocket science, so it's gonna be really hard :-) I'm not kidding either. I think you appreciate how easy rocket science is to us in comparison with all of this financial stuff! OK, suppose they have a huge short position. That means they have sold a bunch of shares, say 100,000 at a certain price, let's say $6 to make the math easy. Except they don't have the shares. So they have taken in $600,000 but they have to deliver shares at whatever price they can get. They are hoping to buy them at, say, $5, for an expenditure of $500,000, thus making $100,000 on the trade. But the buys keep coming in, and they can not buy the shares anywhere near $5, cause nobody is selling! So eventually they bite the bullet and have to buy them in at the current price, which is $8, and that costs them $800,000, so now they have lost $200,000 ($800,000-$600,000). Only problem is, other buys are coming in and the only way they can buy at 8 is to keep selling at 8! Now they are in deep doo doo cause every time they cover at 8 someone else wants to buy at 8! So the best they can do is keep the price at 8 and hope the buying stops so they can at least cover all their losses at 8. So they buy at 8 and sell at 8, like running faster and faster just to stay in place! Now the bell sounds, and they hope that tomorrow there will be few buys and they can give it another shot at trying to buy at 7, or 6, or whatever. Except suppose nobody sells again! And suppose more contracts are announced and more buys pour in! This is what you call controlling the vertical and the verticle! Does this make sense? If anyone thinks I got this wrong, correct me. I am only a rocket scientist.

To: Craig K who wrote (2887)	5/4/1998 5:44:00 PM
From: Richard B. Haenisch	Respond to of 50264

Hello Craig, The marketmakers shorted DGIV thinking/hoping that it would tank. At various prices... let's say at 6 3/4; 7 1/4 and 7 3/4 over the last couple of weeks - the stock, however, showed its resiliency because of us and the MM are forced to buy the shares back to cover their "short" position. You don't sell your shares when you cover - you buy ! If you look at todays activity you see that at the open the MM saw buy orders on their screen, that's why they gapped the stock at the open (from 7 5/8 on Friday to 7 31/32 today) then they hoped the stock would come off, but again because of our strong united front - no one was selling - in fact more buying was going on - THAT'S WHEN THE MM DECIDED - WE BETTER COVER SOME OF OUR SHORT POSITIONS - but of course they don't want to cover higher than they have to so since buys were executed at 8 already they were able to continue to cover more at that price. Throughout the day, they were hoping the stock was going to come down, but NO SUCH LUCK ! So slowly they continued to cover throughout the day - ALWAYS AT 8 DGIV FAITHFUL have not sold much - testimony to a strong group. PEOPLE, We are strong. ANYBODY SEE KTEL, AGAIN TODAY? KTEL MANAGEMENT HOLDS 75% OF THE FLOAT - that stock with a lot of media help has gone from 6 to 68 in the last three weeks. SOUNDS FAMILIAR ? WE HAVE A BETTER PRODUCT AND INVESTORS COMMITTED TO THE COMPANY ! NO REASON WHY (WITH A LITTLE MEDIA EXPOSURE) DGIV COULDN'T BE THE SWEETHEART OF WALL STREET. RICO