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

To: Richard Mazzarella who wrote (5481)	1/29/1999 8:05:00 PM
From: Ken Sammut	Read Replies (1) \| Respond to of 7609

Richard, Excellent post. You are right on regarding MM's and shorting. Sometimes penny stock investors get a little too paranoid about how much shorting there actually is but in some cases the MM's definitely abuse. To all, I am in ARET, NUOA, AGTI, NPEC, and MDIN right now. Everyone on the MDIN thread has made it a mission (so has the company as they recommend on their web site) to call your broker and request the certificates and take the stock out of street name. This reduces the number of shares that potentially an MM can short. If a high enough percentage of shareholders do this, it may make an MM think twice about shorting (especially naked-shorting). They can lose a bundle having to buy shares in the open market to cover if the company surprises and actually has something. ARET may have too many shares and shareholders to make calling in the certs work but with some stocks it does pay. I think you will see that with MDIN very soon. Ken

To: Richard Mazzarella who wrote (5481)	1/29/1999 10:49:00 PM
From: Ken W	Respond to of 7609

Richard, You are exactly correct on shorting penny stocks from outside the U.S. Companies with extremely large public floats are most easily "naked shorted" You will see the same old battle cry of "call for you certificates" time and time again on penny stocks. This does absolutly no good other than cost you for the cert. A simple letter to your broker stating that you do not want any of your stock "loaned" will stop normal shorting. "Naked shorting" is just as dangerous for the shorter as it is bad for the company. If something happens to suddenly drive the stock price up then the shorter is forced to cover. If he cannot get the shares to cover he/she must bid the stock up in order to get shares to cover. If the stock is in strong hands and not sold the short gets his naked butt handed to him. Here is where the catch 22 comes in. As the MM bids up, the greed in us takes over and we sell the shares thus our profit, but it is minimized by the fact that we do not hold. Thus the MM gets his shares and the process starts all over again. Unfornutatly I think that ARET will go back to under .10 and we will wait again, the circle continues. Still holding and not overly excited. Ken

To: Richard Mazzarella who wrote (5481)	1/29/1999 11:20:00 PM
From: Ken Long	Respond to of 7609

LOL..I didnt read after your first post nimbus...I guess everyone has already answered our question!! Good job guys and thx. GO ARET!!

To: Richard Mazzarella who wrote (5481)	1/30/1999 2:53:00 AM
From: nimbus	Read Replies (2) \| Respond to of 7609

That's nicely said, I believe to understand a bit of this now. I'd like to know how the MMs get paid if a stock they shorted goes under. If MMs shorted a shares, say at .02 share(muli-millions of shares) to the point of depletion, and nobody else bought the stock (including the Corp), then the company could go under, right? If the stock was at zero (like zennith did a while back) would the MMs get paid for the whole thing. The difference between .02 and 0? Please tell me more!