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Microcap & Penny Stocks : UNIVERSAL EXPRESS INC - USXP -- Ignore unavailable to you. Want to Upgrade?

To: Batgirl who wrote (851)	7/4/1998 4:46:00 PM
From: WRAP_IR	Read Replies (1) \| Respond to of 2493

Rover 99% of OTC BB Short squeezes never work. The reasoning behind that is 1. The OTC BB is not as formalized as the Nasdaq marketplace and dynamic updating not possible, and most real mm's with real money don't screw around here (which also makes these stocks appealing) 2. Shorting comes from either market makers or off shore investors. Market makers sell on the offer and buy on the bid causinfthem to be in a better situation than you or I. Off shore shorters generally have no problem shorting or finding shares to borrow, if those shares are even borrowed at all. 3. Most BB stocks have shares (especially financing shares) all over the place and selling comes from everywhere. 4. Shorters and market makers are generally far more organized and wealthier than a disorganized band of investors. Since the fundementals of the company do not dictate a buy reccommendation from Merrill or DLJ, most BB stocks go down, so why not short? A short sqeeze would require a concerted effort by both management and major investors/buyers, which almost never happens. Look at losers like INFE MTEI DGIV PRWT etc, ...let's all buy and call in our certs -- that'll screw 'em... Unfortunately, not everyone calls in certs (especially management) and marrket makers throw $500,000 of selling into a stock causes mass hysteria into the hearts and minds of investors and the stock tumbles. The only way to sqeeze a short is to bore him to death, Moderate volume, good news by the company and a goal to increase the share price $0.50 to $1.00 each year with long term individual investors who share the dreams of competant commitmed management (not USXP) For a good example, look at USDI. With the exception that Liberty Capital is promoting the stock and it will fall back to $4.50 sooner or later when they are done with their campaign(JMHO), it's a great company -- Incredible management, good industry, not whoring out their stock, and tons of good news in the future, This stock like the few other BB stocks (AMBI and ACTC) will actually probably make it to Nasdaq and succeed. They never draw that much attention to themselves and NEVER spike a stock -- instant ALERT for a shorter So in a long winded way I'm saying -- We ain't got the money to squeeze 'em -- don't even try, you will loose