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Microcap & Penny Stocks : CHRONICLE COMM. (CRNC)GREAT NEW CO. - ONLY 900K FLOAT& -- Ignore unavailable to you. Want to Upgrade?

To: Trooper who wrote (75)	10/27/1998 10:40:00 AM
From: MicroCap World	Read Replies (1) \| Respond to of 694

I don't mean to be condescending (sp?) but in many respects the MM's do to a stock what the buyers and sellers let 'em. Trading in OTC BB stocks is entirely different than larger stocks. When you have light volume, then huge volume and couple that with the lack of truly enforceable short selling rules and the absence of a downtick rule, it's just a different ball game. Here's a couple of OTC BB trading (buying AND selling) tips: (1) NEVER chase a stock. If you chase a stock the MM's will just "yank" the offers higher on volume and force people to buy at a higher and higher level until the volume dries up. In the case of CRNC it's no wonder the shorts came in to begin to short in the level between 5/8 and 7/8 as volume slowed. Sheeesshh, the bid was 3/32 at the beginning of last week. Any MM worth his salt would get in on that action REGARDLESS of the fundamentals of the stock. Don't forget, short sellers can "average UP" just like buyers can "average DOWN". (2) Having said "Don't chase the stock" make sure, that if you have done your due diligence, that you establish SOME position once you've made the decision to buy. But, keep your powder dry. If the stock is running, and you like it, take SOME position. But then, pick a spot to buy on the pullback. And, you will ALWAYS see a pullback. Maybe not at your price level, but, we all know stocks never go straight up. After you've established a position (maybe 1/3 to 1/2 of the funds you want to commit) if the stock runs and never comes down to your additional buy point. .. .. who cares? You're making money on the initial position. If it DOES come back to your additional buy point, you are happy because you got to buy more, cheaper. You win either way. AGAIN, THIS TRADING CONCEPT IS PREDICATED ON YOU DOING YOUR DUE DILIGENCE. AND I DON'T MEAN GETTING A HOT TIP FROM YOUR UNCLE FRANK OR COUSIN FRED ! ! ! (4) Use a broker who is friendly to OTC BB trading clients. You should be able to have your broker work with his trader to be in the middle of the market. For example, as I write this, the quote on CRNC is 3/8 x 9/16. If you have done your due diligence and have decided to buy at $.50 AND NO HIGHER you would place an order to buy at $.50. Now, here's the rub, a GOOD broker / brokerage firm will have the trading department move the bid to 7/16 to try to catch some stock for you. Now, keep in mind, trading departments won't move for small orders as there is cost and risk involved. In stocks trading below $1.00 I believe that the MM has to be good for at least 2,500 shares on the bid or offer. So, if someone sells to the 7/16 bid the MM at YOUR brokerage house buys it, sells it to you for $.50. Hey, everyone wins. You get the stock at $.50, the trading department at your brokerage house makes 1/16 on the trade (hey that's good for goodwill for you, too) and your retail broker makes a little commission. These are just a few of my thoughts. . .. I hope they are helpful and not condescending. .. IMHO there is nothing especially out of the ordinary in the trading of CRNC. Just MM's rolling up a short after a big price move on big volume and then decreasing volume. Textbook example. CLiNT On another note. For a central location for quotes, charts, EDGAR filings and news on CRNC visit our web site: microcapworld.com Yes, we have been retained to assist CRNC in finding ways to disseminate information on the company to an ever expanding audience. While we don't make recommendations, EVER, we do NOT accept companies as "Client" companies unless they seem to have good prospects and solid management. But the designation of a company as an MCW Client Company should not be interpreted as an endorsement or recommendation. If you DO visit our site, we'd sure appreciate any feedback, good or bad, that you might have.