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Microcap & Penny Stocks : Genesis Media Group, Inc (GNNX) -- Ignore unavailable to you. Want to Upgrade?

To: LT who wrote (1139)	5/20/1998 5:36:00 PM
From: Mark[ox5]	Respond to of 3129

<<I have been watching this stock for sometime. It has the unusual habit of dropping on news. It's strange indeed. Don't know why that it is. But seems to work that way :((>> LT, Not really. This is what happens on OTC-BB stocks (and GNNX yesterday and today). Momentum guys are sitting on the sidelines and/or buying right before news announcements are rumored to come out. When the news DOES come out they see the reaction. If the price does not move up in a significant way, they close out their positions and sell, driving the price lower... MMs take advantage of any selling and move bid/asks lower. It feeds itself. Only way to move OTC-BB stocks is an INFLUX of buying at once. Usually the coincides with BIG press releases with LARGE numbers that catch a lot of people's eyes. It would be a different story on NASDAQ or NYSE as those investors are more than happy to accumulate "value" stocks, but not on this exchange. If you understand the psychology of OTC-BB investors as a whole (and of course there are always exceptions) then you will fret less about the price reactions on a daily basis. Mark