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Microcap & Penny Stocks : THNS - Technest Holdings (Prev. FNTN) -- Ignore unavailable to you. Want to Upgrade?

To: Wally who wrote (3550)	8/13/1998 7:02:00 PM
From: Tom C	Read Replies (1) \| Respond to of 15313

Wally, I'm not an expert on this, but shorts do not sell stock. Shorts borrow stock at a particular price then BUY stock to replace the stock that they borrowed. If the price of the stock when they finally buy it (cover) is less then the price when they borrowed it, they keep the difference (make money). I believe it is illegal for US citizens to short stocks under 5.00. Even if I could short BB stocks, it is very difficult to find shares to borrow. Most shares that are borrowed come from margin accounts. They can be borrowed because the "owner" who bought on margin doesn't really own the stock. BB stocks (under 5.00) may not be purchased on margin. So this leads me to believe that the price went down because owners of the stock (longs) sold some of their stock. Some people who were into this stock at lower prices have an easy double. Some are probably taking a little profit. After all a bird in the hand is worth two in the bush. Tom