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Microcap & Penny Stocks : Madera Int. (WOOD) -- Ignore unavailable to you. Want to Upgrade?

To: David T. Groves who wrote (3650)	3/26/1999 10:48:00 AM
From: Richard L. Williams	Read Replies (1) \| Respond to of 3693

Hi, David-- WOOD has a float of 40 to 50 million shares...how can the MM's ever be short of supply of this stock? Maybe I can answer my own question....I hold what I consider a small position in this stock...yet there can only be 2,499 other people in the world with a like amount, and from what I have seen, I am a small player in WOOD. So I can see how the MM's might be short...seems odd, though. It also seems as though there are people eager to sell...as soon as the market wades through those piles of stock, we might see better upward movement. Sure wish the company would buy back some more shares. Cheers! Rick

To: David T. Groves who wrote (3650)	3/26/1999 5:40:00 PM
From: Don Pueblo	Read Replies (1) \| Respond to of 3693

With all due respect, your understanding is seriously flawed. A market maker may maintain an inventory in a stock, but that does not have much of an effect on the daily ebb and flow of prices. Without getting into a discussion of if, how, and when a BB MM manipulates a stock, just look at it from the firm's trader's viewpoint. He comes in to work every morning "flat", meaning he has no short or long position in the account he is trading. If he is short at the end of the day, it's not because of news or anything else other than the fact that he is betting that the stock will go down. Most traders don't like to make overnight bets; one screw-up and they can get fired. They make their money on the spread. The faster the stock moves, the higher the volume, the better they like it, as a general rule. They take the money away from the public, not each other.