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Microcap & Penny Stocks : Bid.com International (BIDS) -- Ignore unavailable to you. Want to Upgrade?

To: RG who wrote (10917)	3/6/1999 2:56:00 PM
From: Rich Investor	Read Replies (1) \| Respond to of 37507

RG, I am not entirely familiar with the rules surrounding American mutual funds and qualifying investments so unfortunately I cannot comment on that point. As for BB's in general, larger (institutional) investors are allowed to recommend and buy the stock once it crosses over $5. That is often considered the magic number any BB stock must reach if it hopes to achieve a truly legitimate status. Therefore, by proclamation, I would venture to guess that mutual funds will allow the purchase of any BB over that price. (Providing it can maintain that price for a certain time period versus a one or two day blip) In the case of BIDN, the small float and O/S size would account for the good price movement, but I do not personally believe that that is sufficient reason for the maintenance of the price. There are many OTC companies that have promised to open a website on such and such a date as they move towards an e-commerce business platform etc. These come a dime a dozen, and frequently, there is tremendous optimism and enthusiasm for the stock and company in general. Once a lousy (or practically any PR) is announced, or the website is delayed etc. etc., the stock price tanks. (aka buy on rumour, sell on news) Given that BIDN hasn't produced anything tangible yet, I have to question the idea that daytraders are the SOLE reason behind the share rise. I acknowledge they have played a role, but cannot account for the action entirely. I think it was Mike Machi who also posted recently that Morgan Stanley was somehow involved with this company. These are just my observations and I encourage all to do their own thinking. BII is at a disadvantage in this situation because if the two companies land on NASDAQ around the same time (and BIDN will get to the NASDAQ) BII may not be viewed as the favored choice among investors. The price will rise, but not on the scale of BIDN as we all know BII's float and O/S size is too big for such movement. IMHO, this stock's biggest handicap.