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Microcap & Penny Stocks : AMERICAN BIOMED, Minimally Invasive Technology (ABMI) -- Ignore unavailable to you. Want to Upgrade?

To: Malko who wrote (820)	5/8/1998 8:55:00 AM
From: Grant MacMillan	Respond to of 2887

I was wondering when the subject of shorters would rear its head. It would certainly explain where much of the selling pressure is coming from. Solid volume today could wipe out the impact of a shorter for now, but if the buying starts to lag, the stock will lose momentum and fall, if only for a short time. We shall see. GM

To: Malko who wrote (820)	5/8/1998 9:24:00 AM
From: Jeffrey L. Henken	Read Replies (2) \| Respond to of 2887

Sounds like you would like a little DD help? Malko I think there are around 20 million shares outstanding. It may be more because in the past the company has issued convertible preferred shares as well which may very well have been converted. The terms from yesterday's financing deal were much more favorable to the company and shareholders than anything the company has ever done in the past. Ray Tarke did a great job of explaining it in his last post. Message 4373389 I was talking to a friend of mine last night who is also very long on the stock and we think we know that at least 12 million of these shares are now in very strong hands. Sounds like you would like to do a little extra due diligence. You might want to start at Daily Stocks which will link you to virtually everywhere you want to go: dailystocks.com Also I have provided you with a direct link to the company's last 10K which contains a world of information on the stock: sec.gov Here is a link to a post that has lots of information and URL's on ABMI that I wrote just before the last breakout: Message 4297740 Now as for the shorting situation here is what I think happens. Now this can and does happen with any stock a broker wants to attempt to manipulate and they don't do it just with penny stocks. Here is what they do as best I can figure and explain. A brokerage house believes it can predict or even precipitate a downward move in a stock using shares of the individuals who hold positions at that broker. Lets say they have a large account shareholder who had 200,000 shares of ABMI and it's a day where the broker thinks the stock will go down and he wants to make a little extra money. So what he does is he borrows the shares out of his large client's account and sells them short hoping to buy them back again soon lower at a lower price. If he right he has used a very large block of shares to create some control over the market and can make some very nice money. He then takes the money he made between the sell and the repurchase of the stock and splits a little of it with the market maker who helped him to manipulate the stock. Everything is fine for the broker who is shorting the stock as long as the stock goes in the direction which the broker has predicted it will go. But what if there is more buying than the broker anticipated at other institutions? What if people continue to buy more stock like they have in ABMI lately. Well the fact of the matter is that anyone trying to short ABMI will get caught in an updraft one of these days because we as investors are expecting a whole lot more good news than American BioMed received a new credit line. biz.yahoo.com Not that I want to discount that news in the least because it represents the single most important piece of news the company has released in a long time. American BioMed can now commercialize it's entire product line. It's just that I think we will have lots more good news coming soon... Regards, Jeff