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 : JAWS;A P/E of 2 with 150%/yr Erngs Growth!! -- Ignore unavailable to you. Want to Upgrade?

To: Jim Johnson who wrote (2835)	9/13/1998 1:50:00 PM
From: flightlessbird	Respond to of 4230

Jim J. - I can only assume he has his reasons. Certainly I suspect one reason is that he holds such a large position and plans on being with this company for quite some time. Once the Form 10 is approved by the SEC, he will be subject to the dribble rules and will only be able to sell a small percentage of shares per 90 day period. I suspect that he would like to see a sustained short squeeze. To pull all shares now might create an ungodly spike. To pull 1 million now, and then pull 500k blocks at a time in a sequence might provide the best cushion for buoying the stock price even after a large spike. Just my guess. Alternatively, placing the greatest pressure on the shorts just before the rights offering goes effective would be a very justified decision too. He could be saving ammo for that. I really don't know his reasoning but could come up with several legitimate guesses for starting the wheels in motion with only a percentage for now. My personal feeling is that it is not going to matter. whether it is 1 million or 3 million, I personally believe the snowball effect will be severe.

To: Jim Johnson who wrote (2835)	9/13/1998 4:31:00 PM
From: John Fairbanks	Read Replies (1) \| Respond to of 4230

Cardshark also made the point that if Nutstoo were to pull all of his certs at once that Schwab might ask the SEC for a trading halt while they tried to figure out how to deal with one of their shareholders requesting more certs than were actually in the float. By doing it slowly, it will hopefully force a cover without the stock ever being halted in the process... although if it does halt it would probably be worse for the shorts since they would have to do everything through tender offers and I'd bet they'd have to pay more money.