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Microcap & Penny Stocks : BANY: Core business growth, exciting affiliations! -- Ignore unavailable to you. Want to Upgrade?

To: brad greene who wrote (4404)	2/6/1999 2:52:00 PM
From: C. McD	Read Replies (2) \| Respond to of 5847

Brad, I agree with you, I think there are a number of undecided factors, mostly positive, still out there. WRT the short position, you are right, these guys are screwed. Sitra told me that it is their responsibility to cover the short. The situation was that a small group of investors with restricted shares sold ~500K shares short illegally (it is illegal to short BB stocks in the U.S., but not in Canada). BANY took the issue to court because the short selling hurt the stock price, and BANY won. I too believe they covered their shorts over the past couple weeks while the SEC filing was still uncertain. Three things could happen regarding the ANYI shorts. 1 - if the shorts have alot of money (who knows), they may be able to hold the shorts, and they may choose to wait until after the initial runup to cover them when/if ANYI drops in price. 2 - if they don't have alot of money, they will get a call from their broker at some point to liquidate other assets to cover the short as forced by the broker (remember "Trading Places" when Eddy Murphy did this the Mortimer and his brother). 3 - they could go to MMs or other sources to try to cover the short before trading begins, or they could try to cover it as soon as ANYI starts trading, hoping to get a lower price, and leading to a faster runup of ANYI. Only in the second two cases will it help ANYI when it starts trading. I have no idea what they will do, but I sure am glad I'm not in their shoes. BTW - I will not be executing the sale of my ANYI to Mike because of a number of uncertainty factors, the biggest one being DLJ's reluctance to be of any assistance. Don't get me wrong, I sure am glad I don't trade with ETrade, but DLJ's customer service has been pathetic enough for me to decide to seek out a new broker. I was still trying to make the deal work even after the SEC filing, but you can only sit on the phone for so many hours with DLJ before its no longer worth it.