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Microcap & Penny Stocks : HeartSoft Incorporated (HTSF) -- Ignore unavailable to you. Want to Upgrade?

To: Tracy Moore who wrote (946)	1/23/1999 11:02:00 AM
From: Richard L. Williams	Read Replies (1) \| Respond to of 1781

Hi, Tracy! (and all) I have been poring over the trading logs for HTSF, trying to understand why the share price behaved the way it did yesterday. The whole trigger to the mini-collapse around 2:30 seemed to be a sell order for 25,000 shares. This sell order was later "corrected" to 2,500 shares, but in the meantime, it was used by the MM's as a reason to drop the bid to 60&#162. At 60&#162, several stop-losses were triggered, to the tune of between sixty and eighty thousand shares. Those sales knocked the bid down to 58&#162, which then triggered more stop-losses, two blocks of 10,000 shares each. Now the MM has a buyer knocking at the door for that juicy ask of 63&#162. Can't have that! Bid is immediately raised to 63&#162, ask to 65&#162. We finished the day with two buys, but down eight cents on the day. Hmmm. EVERYBODY! Never, NEVER, NEVER use a stop-loss on a penny stock that you think you might really want to hold on to! Market makers can see stop-losses on their Level III logs, and if they are hurting for shares, they will figure out a way to get the stop-losses to trigger. This is what we saw yesterday...the MM's picked up 80 to 100 thousand shares by tripping the stop-losses out, and if those people want back in, I suspect they're gonna have to pay to do it. I know from a Level Two log I saw some time ago that we have Sharp Bros. as one of our MM's...yesterday was a classic SHRP manuever-we have seen the pros at work. But we also have an idea of how needy the MM's are for shares of HTSF. If we don't budge, something has got to give, and I know Ben has more ammo in his news story locker. This struggle has only begun, folks! Cheers! Rick