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To: macker who wrote (17675)7/10/1998 11:40:00 AM
From: MARK BARGER  Read Replies (2) | Respond to of 50264
 
Thanks, Macker. I also recieved story by e-mail and just read it today. That MM lowered the price in order to scare holders into selling so he could cover his short position. In order to cover their short, the MM's must have retail selling, which you would assume would occur at the bid price. We have seen very little retail selling lately. I would think that we would have to have several really ugly days of serious selling for the MM's to even begin to cover. We have not seen that type of panic selling. Even at this ridiculous price of $3 we have more buyers than sellers. It just seems to me, unless I am really missing the boat here, that there is a big short position still out there somewhere. From my point of view, this would be a pretty good time to start to cover those shares, but the MM's have shown no desire to cover. Either the MM's know something we don't, or somebody is going to have a heck of a time trying to find shares in the next months or so.

Mark



To: macker who wrote (17675)7/10/1998 12:39:00 PM
From: Devil's Advocate  Read Replies (2) | Respond to of 50264
 
Very interesting post macker!

I learn something here. If a MM has no inventory on a stock and the buy orders start coming in, he is almost force to shorts since he cannot 'not filled' the orders. So almost every time, the volume goes crazy and the stock price start to rise, you can be sure that they will take it down soon after that.