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

To: bullmarket who wrote (17660)	7/10/1998 9:12:00 AM
From: MARK BARGER	Read Replies (2) \| Respond to of 50264

Just went over yesterday's trade log. Please understand that I'm not hung up on the day today price movements, BUT, just want to share some interesting information. Yesterday's buys were 62,000 shares, sells were 20,800 shares. Better than a 3:1 ratio. And all this buying resulted ina basically flat day for the stock price. DGIV is holding up great while we continue to travel within the news vacuum. Not quite sure what the MM strategy is as far as covering shares. R1 does get overly enthusiastic concerning DGIV at times, but on one point he is very correct. For the past couple of months the MM's have been selling shares to retail buyers without bothering to actually own the shares or buying them later to replace their inventory. At least 2 out 3 days the buying exceeds the selling. NASDAQ MM's aren't looking to make money on changing price trends, they just play the spread and actually make a market for the stock. These OTC MM bandits we are dealing with are apparently betting that they can still cover at a lower price as they continue to sell shares without buying to cover their inventory. They are still betting that the price will trend down where they will buy the stock to cover their short position. I have no idea their actual short position, but it has to be substantial. For example, yesterday we closed the day with a run of 35,600 shares bought against only 1,500 sold in the last 2 hours. A "normal" MM would raise the bid/ask to scare up some sells so he can replace his dwindling inventory, or on another level because the demand/supply tells him that the price is too low because everyone is buying and no one is selling. Enough rambling, my point is, the only thing that matters in the end is the question: Are there more buyers than sellers? If so the rise will rise. That holds true in the case of DGIV. It's just a matter of time. Mark