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Microcap & Penny Stocks : Global Intellicom--Symbol GBIT -- Ignore unavailable to you. Want to Upgrade?

To: Blayton who wrote (822)	9/18/1998 1:41:00 AM
From: Forest Gump	Respond to of 1096

Have you watched IGHS over the last week? ALEX attempted to dominate the BA. Whenever the buying came in the price increased drastically and stayed. If the MM wasn't shorting it they would bring the BA right back down in order to maximize the deal they just did and the price would not rise so quickly on little volume. If an MM sells at 1.5 they want to buy it back at 1.25 or even less (hypothetical numbers). This is obvious, right. Well if the MM is short (meaning they are taking a greater risk) they will rapidly raise the price on small volume. They want to get as high of a price as possible to offset the risk of selling something they don't have and hope that they can paper it back, make a profit and have never even owned the shares. The MM's are not going to throw a stock high for no reason, it slows down the buying and increases the selling, which means they are forced to pay higher for stock that they can not sell. Remember, whoever is standing on the inside BA has to honor the next order in line. (yes, i do believe sometimes they might artificially inflate to create a momentum surge but I think that is rare)