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Non-Tech : Secret Squirrels hit! -- Ignore unavailable to you. Want to Upgrade?

To: musicguy who wrote (10)	7/10/1998 6:45:00 AM
From: Wayne Rumball	Read Replies (2) \| Respond to of 12872

No, thinly traded stocks are not a good idea. Why are they thinly traded? Probably because no one wants to buy them, and those that own them don't want to sell at current prices. So we all buy into a stock that no one wants to buy, people that own it see it as a great opportunity to cash in, or not. Then we all own a stock that is thinly traded, but now at higher levels. No, the stocks should be regularly traded, have volume of say $50,000 at least once a week (or perhaps a percentage of the float) and be traded at least 4 days out of 5 on a regular basis. That at least would indicate they are people watching it. What good would it do to dump 100K into a stock that no one watches? That's what I've been saying about the momo's. We can't create momentum by buying a stock that has traded nothing and waiting for people to notice. We can make people notice by adding to unusual volume that already exists. Look at HOPR, lance brought that out when volume was 1-2 million shares. Don't know how many people on SI jumped in (I don't think it was many) but by the end of they day, anyone that listened to lance and subsequently myself, could have had almost a double on the 29 million shares that traded. The thing sat at basically the same price up to 5 million shares before it started to take off. Something like that is good, we all get in and all get in at the same price. I doubt we can rely on people not to sell their shares. Greed and self preservation are very strong forces and will drive even the most honest person of the highest integrity to act out of character.