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Technology Stocks : GKI-GK Intelligent Systems -- Ignore unavailable to you. Want to Upgrade?

To: KiddStock who wrote (117)	5/25/1998 10:37:00 PM
From: R.E.B.	Respond to of 143

I heard that the covering was a SEC or NASD requirement. I don't know for sure how it works but there has to be a demand for a "buy-in" to the MMs to account for their short positions in excess of stock available. In-other-words, it is the same as if we all asked for a certificate to be issued to us. Previously, such a request would make no difference as BB stocks may be shorted by MMs in excess of the shares in the float. With the AMEX however, if certificates were ordered out by the shareholders, a "buy in" would occur within 3 days......... so I am told. Anyway, I think such a request was made on Friday just before the close. Did you notice that right at the close the ask price went up to 8 1/8th after trading all day at 7 1/2 - 7 9/16? Maybe we will see a squeeze on Monday. At least we know that the manipulation by MMs will now come to a stop. Look for lots of press releases and promotion of the company. I have a feeling that the float is 3.5 million shares and that is NOT ENOUGH for the AMEX which needs more stock to handle a certain number of days of trading. Look for a stock split in the near future to increase the number of shares. This will also put pressure on anyone holding short shares. Good Luck

To: KiddStock who wrote (117)	5/26/1998 9:47:00 AM
From: Robert Dwyer	Respond to of 143

If you read my previous posts, I had called both NASD and AMEX and posted the info I found. Your assessment is basically correct. there is no policy that requires shorts to cover due to listing. There has too much speculation regarding shorts, covering etc. and not enough about the new management team and potential products. The post subsequent to yours is correct in stating that requests for delivery of certificates would force shorts to deliver. These have to be submitted to the floor by 3:30 in the afternoon. (they are known as buy-in orders) Late day strength? Perhaps. Stock split? They are increasing the number of shares to 250 million authorized (NOT OUTSTANDING) on May 27th special meeting. If the stock goes, a split is possible but I really believe that GKI's team is more focused on their business plan than anything else. Most of the staff was in NY last week for the opening on the AMEX. Bob