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Microcap & Penny Stocks : AmeriResource Technologies (ARET) -- Ignore unavailable to you. Want to Upgrade?

To: nimbus who wrote (5479)	1/29/1999 7:43:00 PM
From: James E Lynch	Read Replies (1) \| Respond to of 7609

Nimbus, We can't short Pennies, but the MM's do it as a mater of course. If I can find the write up I'll post it here. Jim

To: nimbus who wrote (5479)	1/29/1999 7:48:00 PM
From: Richard Mazzarella	Read Replies (4) \| Respond to of 7609

nimbus, market makers (MMs) can and do short stocks all the time, it helps them maintain an orderly market, they say. However, they are supposed to balance their books every month. Pennies can also be shorted outside the US, Canadians do all the time. Many pennies have been naked shorted (MMs sell stock they haven't borrowed) to the point of company destruction. When company fundamentals are so poor that there isn't anybody to step in and buy, MMs will naked short a company to death. They win never having to cover. Don't underestimate the shorting that goes on in pennies.