Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : A Wall Street West Newswire Discussion Board -- Ignore unavailable to you. Want to Upgrade?

To: JC Reddy who wrote (60)	7/16/1998 10:43:00 PM
From: Alan Coccio	Respond to of 456

JC, I watch the trading tick by tick on KANA each day and I can tell you without reservation that the current price is due to wholesale stock hitting the bid all day, every day in 5,000 and 10,000 share lots. Someone has an awful lot of stock to sell and they have been more interested in hammering the price than they are in just selling however much stock they hold. I have seen this pattern many times over the years and it is always the result of someone shorting the stock or short selling against convertible debenture type holdings for obvious reasons. Normally, 504 stock is not sold the way this big batch has been sold. If the holder wants to protect the price, he will dribble it in. If he just wants out of the stock, he will arrange a sale a little below the current bid and get rid of it in a handful of sales. All I can say from my observations is that we've got to be very close to the bottom if we're not already there. Once the short covering starts, the price should rise very quickly. Let's face it, whoever has destroyed the price with these short sales stands to make a small fortune by covering. I'm going to just wait it out a while longer rather than contributing to the price erosion. It shouldn't be long if the company itself is what they present themselves to be. We shall see. Alan