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Biotech / Medical : A Luxury Resort for the ill -- Medical Resorts Intl.TRAC -- Ignore unavailable to you. Want to Upgrade?

To: swot who wrote (948)	1/19/1999 9:30:00 AM
From: Saverio	Read Replies (1) \| Respond to of 1126

Marty: re <<IMO, the market makers can make just as much commission selling the stock at .25 as they can at .11>>. The commissions are not the only game in town. I understand that the market makers are also shorting the stock, drive the price down to shake out the uncertain investor, and cover at the low price. If they succeed playing this game (and it's easy for them: they report the bid/ask and they pay no commission), they make more profit if they can keep the shares at a low valuation, for example, if they stick to a range between 8 cents and 10 cents they make 25% per day on their money; if the shares were trading between say, 23 and 25 cents, they would make only about 8%. I believe in this explanation because 82 million shares trading in 12 month, whereas 47% of the shares issued are held by insiders and have not been sold, make for an abnormal frequency of trading, much faster IMO than if trading was simply the result of guys selling because after a while they think the play is going nowhere. I respect your reasons for selling, especially if you had negative experiences when dealing with Mr. Talbot. For me, I still believe this company will make it. Differences in opinion is what makes a market. Best of luck (hoping your luck does not come at my expense :-) ) Saverio