To: Tom Hua who wrote (274 ) 11/19/1998 2:03:00 AM From: Kenneth Yeh Respond to of 1634
Tom, you're HELPING MALL go up by shorting it! You just don't understand do you Tom? I'm not a pump-n-dump poster and I have been following MALL since it was at $5. If you don't believe me, just read my past posts on MALL. (btw, I have a HUGE long position at $5) In any case, the reason that AMZN, EBAY, INKT and others have shot up so high recently is due to high number of shorts vs a small float. MALL currently has 4 million shares floating. After today's activity, the short position approaches the number of floating shares. When you short a stock, you must have enough equity in your account to cover your short position. If the MALL shoots up high enough, people will be forced to buy back their short positions. (Regular buying + short coverings = monsterous gains for MALL) If you think the MALL buying frenzy is over, you're badly mistaken. The big buyers have not gotten into MALL yet. Relatively few people know about the upcoming IPO. The actual date has not been announced. Once that news hits the wires, you'll see MALL skyrocket. Also, if you think Merrill Lynch (the underwriters) will let its money-making baby UBID open at anything less than $75 a share, you're crazy. Merrill are the biggest winners if UBID IPO is successful. And trust me, Merrill has quite a popular following and if it wants to hype up UBID, by golly, its follwers will BUY into it. Conclusion: Merrill Lynch are the BIGGEST WINNERS and the ones with MOST TO GAIN if IPO succeeds. UBID doesn't get a PENNY above the $13-$14 IPO pricing. The profits go to Merrill since it can exercise the over-allotment of UBID shares. IF MERRILL LYNCH SAYS BUY UBID, PEOPLE WILL BUY MALL TO GET UBID! -Ken