To: Tommaso who wrote (41450 ) 12/30/1998 11:21:00 AM From: Knighty Tin Read Replies (1) | Respond to
T, The simple fact is, you have these nothing cos. going "public," while insiders still hold 51% or more of the shares. That creates a very thin float which kills short sellers. Of course, there are no short sellers on the offering, so the stock can just zoom up when the ignorati jump in at the high. That makes the paper net worth of the seven former bums who started the nothing co., fantastic. Then, when short sellers see the valuations vs. what is reality, they knoce the stocks down a bit. The public then buys stocks at "bargain" prices, perhaps only 100 times the fair value, and squeezes like crazy.
