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Microcap & Penny Stocks : ARET (Formerly KLHE) -- Ignore unavailable to you. Want to Upgrade?

To: steve walsh who wrote (4415)	5/28/1998 6:58:00 PM
From: RCJIII	Read Replies (2) \| Respond to of 4594

To any longtime ARET holder- my chart shows ARET popped to over .40 last October. It quickly came down to present levels from there, but it has shown the ability to skyrocket in a short time frame. Can anyone explain what happened to make the stock move so drastically? Thanks RCJIII

To: steve walsh who wrote (4415)	5/28/1998 7:03:00 PM
From: Gobe	Respond to of 4594

Steve, That's pretty much right but there's more. The question might come up, "If someone is buying from me then why can't I sell at the ask?" The reason is of course that we do not buy and sell amongst ourselves.. we buy from and sell to the MM's. They'll buy shares for a lower price (the bid) and sell them for a higher price (the ask). The difference between the bid and the ask is pocketed by the MM's. So if I dump my 100K aret at a bid of 0.025 (which ain't gonna happen!) I get $2500.00, if someone turns around and buys 100K at an ask of 0.028, they pay $2800.00, the MM has just made $300.00. In typical trading, the mm's don't give a damn whether a stock goes up or down.. they make money moving shares. In some cases, they may accumulate shares anticipating a coming demand for the stock where they can reap large gains by selling the shares they bought cheap at much higher prices later. So a particular MM might be buying up shares and not selling them back (in which case you'll see them with a bid right around the inside/posted bid, and an ask far above the inside/posted ask). The other extreme is a MM selling shares and not buying them. In this case, that MM will show a bid far below the inside/posted bid, and an ask right around the inside/posted ask. This is one reason folks on the thread occasional ask individuals like M. Harb for the "MM lineup". Kinda helps to give a feel for where the various MM's are positioned as far as buying/selling/accumulating of shares. Gobe