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Microcap & Penny Stocks : VLVT (was CSMA) -- Ignore unavailable to you. Want to Upgrade?

To: TraderGreg who wrote (10308)	12/5/1998 1:20:00 PM
From: TraderGreg	Respond to of 11708

I received a PM inquiry as to the basis for using the value of .2014 for CSMA's bid. Prior to this week, I had been using the last closing bid prior to distribution of the AdHatters (AH) and Envirotec (ET) restricted shares, which was .150 bid by .165 ask. After the spin-offs, the price of the residual CSMA shell fell sharply and is now .025 by .028. Some have asked why I am not using that bid price. The reasons follow: The bid/ask price for any stock is based on what a Market Maker will pay for the stock and what a Market Maker is willing to sell the stock for. Since AH and ET are both restricted, those prices do not exist on the open market. However, that does not mean they are zero. For that reason, I posted last week a request for bid/ask on AH and ET from people here on the CSMA thread. I received only two responses. I gathered from those responses that these two "in-house" individuals were willing to pay a certain price to acquire additional restricted shares of AH and ET. While they didn't specify a quantity, I assumed that each were making those offers on the bid and ask for at least the minimum OTC #(typically 500 to 2000 shares, I think). The "best Bid" was .36 and the "best Ask" was .40 for AH. The "best Bid" was .75 and the "best Ask" was 2.00 for ET. As there exists an "in-house" market maker willing to pay .36 for AH and .75 for ET for some modest number of shares, I feel it is quite appropriate to use those prices as input to computing the approximate BID for CSMA(and its spinoffs) as of 12/04/98. Now, does this mean that, if the rest of the thread wants to sell 100,000 shares of ET restricted stock, this one "in-house" MM will buy them for .75? Of course not. But that is true for any stock traded thru so called professionals. Correct?. Next week, all these numbers could easily change. One or more new "in-house" people may get added or deleted. If I have no "in-house" bid/ask offers then I will evaluate the CSMA at whatever price the existing CSMA shell is trading next Friday. Anyone wishing to add their own bid/asks to this list, let me know. All I ask is that they be honest offers, i.e., the maximum price that you would actually pay to buy AH and ET and the minimum price that you require to sell AH and ET. TG