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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security -- Ignore unavailable to you. Want to Upgrade?


To: ESPY who wrote (822)6/13/1998 2:52:00 PM
From: Junkyardawg  Read Replies (2) | Respond to of 2534
 
This is what I am talking about.
Everytime a news release comes out someone
sells a sh@#load of stock from the inside.
I don't know if it is management or not and at
this point I don't care. All I know is that it
keeps the price of the stock from making anykind
of run upwards.

Another ,46,623 shares filed for sale on a form 144.

144 53,604 46,623 5 - N,N,N,N,N 1.15 6/12/98
Notice that it is after a good news release!!!

Lamar



To: ESPY who wrote (822)6/13/1998 3:02:00 PM
From: DrMedina1  Read Replies (2) | Respond to of 2534
 
Yes, indeed, ESPY -- why is Frankel short?

The short answer is: because he was doing business as usual in a very unusual stock.

Believe it or not, most MM's have very limited ideas of what the companies they make a market in actually do. Think about the last piece of junk you were in. The MM who bought your shares when you dumped them a little before 100 other people (or maybe a little after) didn't agree to take them in because he truly believed in the future of the company.

He was just doing his job, and trying to scalp a spread. MM's, and DD which leads to opinions on a company, don't mix.

While MM's don't know much about individual stocks, one thing they do think they know is that buying pressure in BB stocks never lasts, and less so when they're being talked about on the Internet. So they short naked into buying interest, because they must fill calls from retail brokers or lose their trade.

Most of the time, MM's don't even have to wait for the price to come down to cover. Usually, there's another MM with inventory in the stock (maybe he's the one everybody sold to when the bubble three weeks ago burst). This MM will likely let the shortie have shares below the bid to free up capital. By so doing, the MM with inventory also gets a marker for a favor from the shortie, which can be cashed in some other time when the long of today is short in this or some other stock.

If no other MM's can or will help cover, the shortie figures he can get even when the people lose interest in the stock, and the price begins to fall.

Frankel made a serious miscalculation by going short into the recent steady rise in ALYA. He probably knows less about the company than you do, but he certainly knows now that he's in trouble. No other MM's will help him out with stock, BECAUSE NOBODY HAS ANY. The float is oversold, ALYA isn't diluting, management isn't selling, strong hands are holding well over 1,000,000 shares, and he has nowhere to go.

So Frankel is resorting to the last refuge of the MM, market manipulation. Short more, and allow the price to rise modestly during waves of buying around news reports. Then, when the wave dies down, walk the price down on small sellers like Lamar Cook, or else kite bogus 100 share lots which the MM may literally be selling to himself.

The idea is to make the new buyers feel like they've gotten a bad deal, and dump. The shortie MM takes in those shares for considerably less than they were bought for a few hours ago or yesterday, makes a nice profit, and reduces the short interest on his books.

But Frankel reckoned without the continuing stream of good news from this dynamic little company. I'm also sure he was quite unprepared for the appearance of World Vision on the scene. As he reads these words over the weekend (MM's don't have time to read everything on the threads, but you'd better believe he's reading this one now), Frankel is beginning to grasp the size of his problem.

It is possible that Frankel is still counting on the Lamar's of the world to bail him out of his problem. My best guess is that he is mistaken. And I would be greatly surprised if World Vision's highly effective IR machine does not bring in multiple waves of buying in the days and weeks to come that will swamp whatever few shares Mr. Frankel can shake out of whoever is inclined to turn loose of them.

My best advice to Mr. Frankel would be to take his lumps now, and not compound the problem by being obstinate. But people will do what they want to do. I wonder how many of you would like to send Frankel a message by posting two simple words on this thread:

I'M HOLDING