Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : AWLT wines and gourmet food - Italy Direct -- Ignore unavailable to you. Want to Upgrade?

To: Ferick who wrote (889)	5/13/1998 11:31:00 AM
From: William B. Hill	Respond to of 2595

Could it be insider buying? Possible favorable outcome on cheese lawsuit thing? (speculating...but what else could it be?) On the cert calling: Tryed this with Eutro and an enormous float; the stock flew from .01 to .27 in weeks but all on anticipation of a "short squeeze." Depending on the size float, calling in certs can skyrocket a stock but there must be big time cooperation amoung shareholders. With Eutro, 2 things caused the squeeze to fail: #1. While everyone was calling in for certs (about 24m which would have been over the suspected float with Eutro retiring shares and the preferred conversion) 4 companies who owned stock held as collateral (50mil) were selling it, increasing the float size up to 50mil. #2. Larger shareholders telling everyone to put their stock in cert form were selling out (making thousands off of unsuspecting shareholders.) In theroy, calling in of certs and getting them out of the "street name," puts MM's in a bad postion where eventually, they have no choice but to go into the open market to cover their positions. If there is a large naked short, they chase the price up trying to get enough shares to cover their positions. I would like to get into another chance at a short squeeze but the total outstanding shares must be below 50mil before I'd even be interested. JMHO Bretttster