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

To: ANALYST10 who wrote (15624)	6/24/1998 8:37:00 PM
From: ANALYST10	Read Replies (2) \| Respond to of 50264

By the way, they can raise up to $1 million dollars at any time during a 12 month period and then another $1 million in the next 12 month period. One of the tricks they use is to issue shares under 504 at a penny and give millions of free trading shares to the person. His cost a penny. To disguise the sale price of these shares they will sell some other share prices to those "outside" the group at reasonable prices. So you may hear that the company raised for example $650,000 not knowing who paid a penny and who paid $1. You will just hear $650,000 for let's say 2 or 3 million shares and that doesn't tell the story and as a non reporting company they don't have to tell you anything. But if you could find out the basic info, you still could not tell who got what and there is no way to find out even when they are reported in the financial statements, because they are never broken down. They can also pay a promoter with 504 stock and say he performed services for the company and in exchange for the debt the promoter has forgiven his monies owed in exchange for a "number" of shares of stock. Which basically means, no money changes hands, the float is diluted, the company receives no money and so on and so on and so on. Its an ugly business. That is why legitimate businesses put together business plans, take them to underwriters who evaluate the plans and find a home for the company if its worthy. And believe me there is no shortage of houses looking for good deals. In these market conditions, they are bringing out companies in record numbers and can't get them out fast enough.

To: ANALYST10 who wrote (15624)	6/24/1998 11:03:00 PM
From: macker	Read Replies (1) \| Respond to of 50264

kinda like we saw on dgiv today, which i expect to come back down to the 2.50 range, it is kinda like reverse psychology, panic buying, right? my cousin said that the broker houses make over 65% of their income on charging to lend out these shares, people think the big money is on commissions, he said no way, the short game is where the money is and playing the spreads. he makes a million plus a year working 2-3 half days a week. on lesson three, ill do ya even one better, they will run the volume to make it look like huge interest in the stock, knowing that either way they push the stock, up or down will panic the people into buying into the run or selling into the dip. they cover in either case and make the killing with the spread being unusually large and people not caring because they dont want to "miss out", or "get stuck". that is why watching up and down ticks with a bb is basically worthless, opposite of naz. this tick can be planned or orchestrated by the mm, he will use your fear against you, but he has the advantage because he can change the tide at his whim, so instead of looking for big profits, he can play you for the 5-6% tick all day long. the stock doesnt move much but he made a killing. one thing about the shorting issue though, i dont know if you are aware or not, but you can set up a canadian short account from here in the states very easily, you dont have to be in canada. there are several brokerage houses here in the us that have sister houses in canada as well. and for a quick fyi, im told that ir firms make a killing shorting there own stocks. macker