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Microcap & Penny Stocks : AmeriResource Technologies (ARET) -- Ignore unavailable to you. Want to Upgrade?

To: Samui who wrote (2780)	9/18/1998 10:47:00 PM
From: Richard Mazzarella	Respond to of 7609

Samui, <<do "ANYTHING"?>> I have been long this stock and observing it for some time now. I asked a while back if this company was just printing paper. People said no way. Later we find that the common outstanding is much larger than people previously believed. Not that it's so, but simple observation could suggest a company pumping out PRs and printing certs. That's what a reasonable observer may conclude. Large volumes with no appreciation could also suggest a floorless convertible conversion, but people insist that's not the case. We have heard arguments about the MMs just working shareholders. On first blush there is merit in that conjecture until one walks the process through. Are the MMs working the stock just for the spread? They can only work a spread based on buying and selling. They can only work a spread into where the buying or selling will permit, make a market. Holding a trading range soon loses interest by short term shareholders, the action dries up. Naked shorting of pennies by MMs has to be risky since they must balance the books monthly and could easily get caught on really good news. <<do "ANYTHING"?>> My best guess is that the trading behavior we observe is day trading were traders can make more day trading ARET than flipping hamburgers at Micky Dees. Gattling gun PRs and day trading also serves the MMs interest, the perfect family match IMO.