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 : Amazon Natural (AZNT) -- Ignore unavailable to you. Want to Upgrade?

To: KCsunshine who wrote (1988)	8/26/1998 11:09:00 PM
From: MicroCap World	Read Replies (1) \| Respond to of 26163

A simple question: Has ANYONE ever seen a 'deliver your certs' short squeeze work? Fundamentals are key. What are the sales? What is the market cap? A friend directed me to this stock and topic as it seems to be another excessively followed stock that could either be a huge success or a dismal failure/fraud. Now, I'm gonna have to do some due diligence. But, again, I ask, "has anyone ever seen a 'deliver your certs' short squeeze work with a BB stock? Regardless, good luck to all, bashers, shorters, proponents and long and short term holders. CLiNT

To: KCsunshine who wrote (1988)	8/26/1998 11:22:00 PM
From: Jeffrey S. Mitchell	Read Replies (2) \| Respond to of 26163

HOW DID THIS STOCK GO UP THIS PERCENTAGE, ON THIS VOLUME, WITH THIS CAPITALIZATION, IF THERE IS NOT A GREAT DEAL OF ILLEGAL STOCK IN THE FLOAT SOON TO BE CANCELED? I'm probably the least qualified person to answer this question but I'll take a stab at it. From what I read, a newsletter went out this past weekend to 1300(?) people touting this stock (I recall Cavalry saying it was his pick that he gave to Big Dog) and, I presume, talking about an imminent short squeeze. There was also a "mention" of it in Jim B's newsletter, Top Dog, which goes out to 2000 or so. On Monday, a bunch of these people figured, hey, sounds plausible and threw some money at it. I can't remember the volume on Monday, but, if just 5% of the 3300 bought just 2K shares, that would be 165 * 2K * 2 = 660K of (total) volume. If I'm an MM, and I saw such huge buying coming in, I'd take those people to the cleaners. Just one person's opinion. - Jeff

To: KCsunshine who wrote (1988)	8/27/1998 12:15:00 AM
From: wonk	Respond to of 26163

KCsunshine: Let all those who can offer an explanation of how a stock went up 400% with such low volume happened? How about this as a theory -- just a theory mind you. Assume insider's control the vast amount of shares of a company. Assume also that most of those insider shares are unrestricted. At some time in the past, preferably at the market peak, insiders start selling short small amounts of shares into the float. Since the short is "covered" they have no problem with margin requirements. When the stock begins to bottom, they start to cover. This takes time to do without seriously impacting the share price. Once the large portion of the short is covered, a pump campaign is started, the remaining short position being covered with market orders. Those market orders, in combination with the pump, drive the stock price significantly up -- for a few days. As the pump begins to lose steam, the covered shorting begins all over again. The net result is that those holding shares have the same profit -- except for commissions -- that they would have had if they had sold the same amount of shares at the peak and they still own the shares. Again, just a theory. ww