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Biotech / Medical : HEB, Hemispherx Biopharma (AMEX)NEW -- Ignore unavailable to you. Want to Upgrade?

To: T-Lo Greens who wrote (349)	9/24/1998 11:04:00 AM
From: Fred Mussler	Read Replies (1) \| Respond to of 857

Chat Buying; When the shorts strike (ie Asensio shorts two days ago that drove the stock from 8 plus to 5 ) someone has to buy the stock (first) that they sell,but the tremendous shorting creates SELL orders first. This drives the price down (the bids drop). It is my understanding - and someone else can correct me that the mm (brokers) will buy the stock for the shorts to short (sell),if a match can't be made,and they naturally buy it as low as they can. Their plan is to sell now buy back later (and hopefully) lower and make the spread. Brokerage houses merely want the commission now, so they buy the stock - to match the sell order of the client (earning the commission from the seller) (the shorter). The client then buys his stock later when the (if) the stock falls, and it is almost guaranteed to fall due to the selling pressure from a large number of sellers (shorts). The loser is the guy who sells it to him later if the stock is lower. So this is how shorts create a market. What Asensio does is look for Companies operating poorly with a low number of shares outstanding- writes the story about it (hopefully truthfully) then when all his subscribers (Asensio.net) follow him this happens. What the government has to find out and where there is trouble , is if he colludes with others to do this first and drive the price down- then we all follow to make it worse. Don't know what laws this would be violating, but i know if he picked my company to do this to I'd worry. IT WORKS. Fred