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Microcap & Penny Stocks : DGIV-A-HOLICS...FAMILY CHIT CHAT ONLY!! -- Ignore unavailable to you. Want to Upgrade?

To: hub who wrote (9731)	5/30/1998 7:50:00 AM
From: Pakman2000	Respond to of 50264

I can sum up the intentions of the Market Makers very easily........ A MM makes his leaving buying and selling stock. They are responsible for keeping the Nasdaq/OTCBB and now the AMEX markets which contain literally thousands of companies.....LIQUID. It is impossible for the MM's to know all about the companies for which they buy and sell stock...... Therefore there numbers are primarily dictated by Supply and Demand but dont think for a minute that there aren't other factors that play a role. They buy and sell based upon fundamental principles which don't change whether the stock is trading at 1.00 or 100. The MM's dont care whether its DGIV or Microsoft the bottom line is that there will be buyers and sellers at every level and thats how they make their living! There are many times that EMERGING companies like DGIV get completely OVERSOLD and breakout of the traditional fundamentals which the MM's follow. In other words... typically speaking..... a MM sells shares for a BB or another fairly unknown Small Cap stock.... The MM following fundamental principles believes that most of the time these stocks trade on momentum and hype and will eventually return to the levels where they started, SO THEY HOLD A FAIRLY SUBSTANTIAL SHORT POSITION......knowing that when the hype or momentum wears off, they will cover.....thus making a hefty sum!...........BUT...... what happens when the stock continues to gain strength and doesn't return to those levels........THATS RIGHT....THEY'RE SCREWED!.....This is where the scare tactics and antics come in trying to reduce the DEFICIT! People there will always be Buyers and there will always be sellers.....AND THERE WILL FOREVER BE THE LIFE OF A MARKET MAKER......The savy investor learns by experience to keep focused on the fundamentals of the company that he/she is investing in and not pay attention to the way the stock gets traded.......