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Microcap & Penny Stocks : GLOW - Global Games, Inc. - Great Profit Potential ! -- Ignore unavailable to you. Want to Upgrade?

To: Wayne J. who wrote (4037)	7/2/1998 3:55:00 PM
From: Brad	Respond to of 8879

* Off Topic (kind of) * Wayne J., Certainly we don't want to imply that ALL Canadians are "shorters." I know you are LONG on GLOW and I appreciate your thoughtful and interesting posts. You have brought up an interesting topic and I would like to add a few thoughts. "Shorters" are not just sellers. Let's take GLOW for example. Here is how I see what is happening with the 20 million shares that GLOW has demanded back. Many of those shares were probably "shorted" against over several months. Now those shorters are trying to cover (much to their discontent). But if they have to cover, they want to cover at as low a price as possible. As many people have observed, in OTC:BB, it seems to take about 2-3 buys to each 1 sell for a stock to increase in price. So if a shorter is buying to cover, they can buy 100,000 shares and sell 50,000 shares and the price tends to remain at the same level UNLESS there is more buying from others. When there is buying from others and the price starts to rise, the shorters resort to more bashing, confusion and scare tactics to keep people from buying while they are covering. If they continue to buy 100,000 and sell 50,000 they can eventually cover their short position. The bashing stops and the stock rises. HOWEVER... If heavy buying starts (say because the company makes a BIG announcement), and the price starts to rise, the shorts lose control of the situation and that what makes them desperate because they get squeezed into buying at higher prices. That's when we see "bashing the good news." Of course, I would probably get emotional if I was in their shoes, too. Shorting & covering are part of the market. But in BB stocks, most shorters hope they never have to cover. So ANY covering makes it tough for them. Gee, why don't I feel sorry for them? :-) Food for thought. Best wishes, Brad