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Microcap & Penny Stocks : Rocky Mountain Int'l (OTC:RMIL former OTC:OVIS) -- Ignore unavailable to you. Want to Upgrade?

To: Riley G who wrote (49575)	7/13/1998 4:24:00 AM
From: Riley G	Respond to of 55532

Message 5175081 To: jpbrody (1440 ) From: Bill Wexler Monday, Jul 13 1998 4:21AM ET Reply # of 1441 PHGN is interesting but not really a good short, here's why: First of all, it trades on the OTC:BB. While it is technically possible for the average investor to short a BB stock, for all intensive purposes it can't (and shouldn't) be done. One of the primary reasons it is dangerous to short BB stocks is because many of them are rigged, sometimes they may only have one shady market maker. I can assure you that if they ever managed to meet the requirements for small-cap listing (and it seems unlikely they ever will), the market cap would not be $700 million. My guess is that the insiders are slowly bleeding stock out to some retired dentists in Florida (check out the insider trades), and what these suckers are paying is distorting the "market cap" wildly. After reading the last 10-Q, I wasn't surprised to discover that 94% of the stock is controlled by insiders. This leads to a weird situation much like SIEB or KTEL. Even if by some miracle you could find shares to borrow - it simply doesn't make sense to short 'em.