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Microcap & Penny Stocks : DCI Telecommunications - DCTC Today -- Ignore unavailable to you. Want to Upgrade?

To: Timbo who wrote (11757)	11/28/1998 6:05:00 PM
From: Steven R. Bergman	Read Replies (2) \| Respond to of 19331

All, I would like to introduce a related issue by asking what may be a very naive question. The issue is that of determining the number of shares available for (legal) shorting. The attention and emphasis to date has reasonably been placed on those shares in taxable accounts for which certificates can be requested. I have inferred that those shares in tax-deferred accounts (Keoghs, IRAs, etc.) are not requestable because they are being held in trust for those persons covered by the IRAs. I have similarly inferred that these shares are not legally loanable, either, and hence are not being counted. What I don't understand is why they aren't. If the trustees must legally have the shares (they must, mustn't they, or else why wouldn't we ask our trustees to request them on our behalf?), then the shares in these accounts should be treated identically to those for which certs have been requested. And just as Joe has kept a running tally of those shares for which certs have been requested, wouldn't a request for a running total of those (tax-deferred) shares unavailable for certs yield equally useful information? I have corresponded with Joe privately about this, but I still don't understand either the "certifiable" status of tax-deferred shares nor why this information wouldn't be useful..... I'm convinced my lack of understanding is absolutely not Joe's fault, BTW. <g> The information may or may not be relevant. But if a company has 25 million shares outstanding and 5 million of them are held in tax-deferred accounts, and there is any way to ensure that tax-deferred shares are not loaned to the shorts, then it seems to me it'd be very useful to be able to add the number of tax-deferred shares to the "certified" ones to get closer to being able to determine what the actual legally loanable number of shares really is. I presume there's a basic truth relative to to the loanability of tax-deferred shares of which I'm simply ignorant. Can anyone enlighten me? Tia, Steve Bergman

To: Timbo who wrote (11757)	11/28/1998 7:26:00 PM
From: Spider Valdez	Respond to of 19331

you are right. getting physical delivery of stock in name will call shorts. it is shorts who will tell you this never works. they will tell you you can not sell your stock during time stock is being called. you can & i suggest you call local nasd office to inform you of this. bb stocks are shorted naked very often. calling certs will force naked shorts to cover. this requires honesty from company. shareholders must know accurate float & outstanding shares. what shares are to come off restriction. most important is dtc sheet which will tell company of short & naked short position in there market. it is only math after you have these constants. if float is 12 million shares & shareholders call 13 million shares into name 1 million shares must be bought from shareholders at shareholders price. it also requires close inspection of trading. if selling is happening there must be buying to keep it in line. this will require experienced traders to be on the bid. short squeeze is not easy & this is why we see so much naked shorting in bb stocks. it requires much fortitude to accomplish & shareholders must resist giving in to mm & shorts scare tactics. in the end it is math. supply & demand. spider