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Strategies & Market Trends : RFGI Launches Daytrading Internet Brokerage Service -- Ignore unavailable to you. Want to Upgrade?

To: Jon K. who wrote (72)	2/11/1999 1:26:00 AM
From: Rick McDougall	Read Replies (1) \| Respond to of 144

RBC Dominion securities. If the stock does go to $15/20 I will short more.

To: Jon K. who wrote (72)	2/11/1999 1:32:00 AM
From: DavidCG	Read Replies (1) \| Respond to of 144

I was on #daytraders today, and one of the complaints was no one could short this. I tried via ameritrade..no dice. Heard that about 6 other brokerages (waterhouse, Brown, Datek,. Schawb, Etrade, NDB) who have allowed shorting of microcap stocks like this and none of them had RFGI shares to short today. So, it will be an interesting open tomorrow..why? Clearly there is an interest in a MBT daytrading brokerage competitor. (how RFGI sets itself apart from all other brokerages is that it is specifically designed for daytraders only: A very profitable niche market as daytraders churn commissions in huge volume -just ask MBT) 2.98 million outstanding shares 0.8 mil float (holy cow these are extremely low numbers) 10.7 million volume today Now I don't care what stock this is.. but that basically cries out that investors are interested in this one. And will be watching and buying on dips. Knowing that its an online brokerage catering to only daytraders -the people that generate the most commissions- investors will always be interested. The bonus: no one can find shares to short it EXCEPT marketmakers..who have to in order to create an orderly flow in the stock. This kills mm's because they eventually have to find shares to cover (and will do so by raising the price and hopefully drive you out of it). For a recent example....look to JBOH. Ran from $2 to $25 recently. And JBOH had a whopping 14 million outstanding shares and 6.6 million float. Thats 5 times as many shares as RFGI and 8 times as much float. If JBOH can go to $25..it is exciting to imagine how far and how fast RFGI can move. One final note... think of earnings. With such a low number of shares, any profits from this daytrading brokerage are going to look huge in an EPS number. Earnings won't be spread out over 14 million shares (JBOH) or 30 million shares (AMTD) or 113 million shares (EGRP)..but only over 2.98 million shares. RFGI EPS numbers will look huge because hardly any shares to spread all those profits over. WOW! Are you guys getting excited yet? -DavidCG