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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security -- Ignore unavailable to you. Want to Upgrade?

To: MeDroogies who wrote (1466)	7/27/1998 11:35:00 AM
From: TLWatson59	Read Replies (1) \| Respond to of 2534

Mr. droogies: Please read this in it's entirety and carefully for the answer to your question. You may also pay attention to the comments of the last paragraph and see how strongly I suggested selling, dumping and getting out of the stock. I am still waiting for one of the accusers to post such a suggested move in any of my posts. It's ironic though, that had I done so and someone actually followed such advice they could have saved up to 55% in market price loss and certainly no less than 25 to 30 percent at the least since my first post in June questioning the veracity of some of the ALYA claims in both their PR news releases and especially by their four most rabid supporters. To: Sea Otter (1275 ) From: TLWatson59 Wednesday, Jul 15 1998 11:14AM ET Reply # of 1472 Sea Otter: You are faced with an ironic situation in ALYA in that most stock promotions involve companies with little or no real assets and no viable product. Here you do have a company with a recognized product but one which has been milked dry of the majority of funds they raised through various hidden exempt SEC private placements except for the few hundred thousand spent to develop the security system they are now selling through real and legitimate distributors after showcasing their Canadien Project. There are however some problems that are either glossed over, ignored or rejected by the hypesters and carried away shareholders. First and foremost is the claim of leading edge technology and two year lead on all and any competition. Outside of the claim made on this message board or by people employed by ALYA discussions I have had with people in the industry are clear about two things. The degree of sophistication needed to program the neuron chip used in the hardware is minimal. There are some European companies currently offering similar functioning hardware. The main problem however, is that there is currently no generally accepted "industry platform." There is a very large potential $ market in the security field as applied to structures but until Echelon, the control factor in this field, establishes one that is universally accepted, it is most unlikely that other than for semi-experimental purposes, major multimillion dollar investments are not going to made in the present state of the art. It appears to me, and others who are far more knowledgeable in this area, that ALYA offers an opportunity to experiment on the cheap, while waiting for more serious and far more financially stable companies to get up a head of steam. A company such as ALYA would serve as an appetizer for any of the other LONworks Associates members should they elect to enter the market place. Believe me in the not too distant future they will. When I first began looking into this stock, originally with the intention of becoming a shareholder, it was trading around $ 1.60. By the time I was able to collect enough "independent" information it was trading around $ 1.39. When I finished analyzing pertinent data and published my concerns about what I had found it was now down to $ 1.31. After much castigation, accusation and general keel hauling none of which had any veracity, the stock has fallen to less than $0.75 today. This in the face of what under normal circumstances would have been dynamic news releases and the hiring of a PR professional organization to bolster confidence in the company and encourage investment in the stock. Instead of looking for real reasons for this contradictive market behavior the lead hypesters and promoters continue to drag out the age old ploy of MM short selling and shennagins When asked what is the difference between a "Market Maker" and an "MM", when both are identical, the response is that one makes a market in the stock but the other trades for themselves and is really nasty. In the OTC market arena all of the Market Makers who are also known as MM's make their living in two ways. Either by trading for their own accounts and profiting from the price spreads between the bid and asked price ie:, buying at the bid and selling at the asked or selling short at the asked and replacing the short sale with an open market purchase at the bid either later in the day or on another day. In addition there are Market Making firms who act acts wholesalers or brokers for other stock brokerage firms who choose not to make markets in OTC stocks but need to fill orders for their clients. In this case arranged transactions are agreed to with the MM getting a percentage (read commission) for executing the order or sell or buys from their own inventory. Thus when you see a block of stock trade on the offer price and immediately see the bid price drop it is more than likely a sign that the MM has shorted the stock to fill the order from his customer and hopes to replace it at a lower price and not suffer a loss on the short sale. Conversely it's not unusual to see a trade on the bid and then see the ask price drop so that the MM can sell the position he may have just bought. MM's by nature are not long term investors and in many instances two trades later might be considered long term enough for them. In any event, not that I am recommending it, a speculative buy under 3/4 could result in a short term profitable trade. You certainly would not be risking as much as some would have had you do just a few weeks ago. I just would not want place my bet on the longer term prospects for ALYA. I would keep a sharp eye out for one of the more sophisticated members of the LONworks Association to announce their entry into this field. Especially keep a watch for the Echelon IPO filing.