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Microcap & Penny Stocks : Tokyo Joe's Cafe / Societe Anonyme -- Ignore unavailable to you. Want to Upgrade?

To: jaybird who wrote (5024)	6/18/1998 9:59:00 PM
From: STEAMROLLER	Read Replies (1) \| Respond to of 8798

IFLY MUST READ, off the yahoo thread <- Previous Next -> Message 1930 of 1942 Reply The Dynamics Behind the Move simarx Jun 18 1998 8:51PM EDT There is a huge short position on IFLY. The short position cannot be held by individual investors, but by some insiders who are either arbitraging against the Warrants and/or sold the rights to their restricted stock to some offshore company. The size of the position suggests that it is someone(s) who is holding a large chunk of IFLY from the IPO, but those stocks are restricted, so they have to play some sophisticated game, which means we have a professional shorting. There is a 30 day limit to how long a broker/dealer can hold a short position, but there is a way around this. The BD simply sells his short position to another BD on a handshake that they will get it back later. Thus the 30 day limit is circumvented. If you take a look at the number of firms holding a position (you can find this on the Nasdaq site) it becomes clear that there are many BD's holding long positions for their clients in this stock. What does this mean, there are fewer BD's inclined to hold the short position for another 30 days, forcing the short to cover. This coupled with the current run-up makes it harder for the pro to pass the short on to another BD (We are talking about a significant bleeding today.) The key right now to create a good squeeze is not to sell, no matter how tempting. If you feel confident that good news is coming soon, stick to your guns, this is war. The pro on the other side is injured and you can sure bet he will come out fighting tomorrow. He may sell into buys creating artificial weight hoping the demand wears out. Look at the big picture and the potential upside to keep the squeeze going. There is a lot of money for longs and it will continue to grow as the short is forced to cover, very little stock for sale out there. If a big block opens up for sale, it will probably be the short trying to scare you. Remember, we are talking a potential 7 digit loss for some pro, he will fight hard tommorrow.