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Microcap & Penny Stocks : MDI Entertainment (MDIH) -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Jens Tingleff who wrote (367)	4/26/1999 9:27:00 PM
From: MDIH-Fan	Read Replies (2) \| Respond to of 563

With regard to the short position in MDIH I thought I may be able to offer an explanation. Since MDIH is a bulletin board stock market makers have the ability to short the stock on an up tick and a down tick. They can also carry the short forever! It is for this reason that MDIH wants off the bulletin board. The only thing missing is the $3 requirement which I believe is not far off. I also believe this company has no plans to execute a reverse split to achieve this number. The vote was in an effort to get shareholder approval should the board deem no other alternative. This saves the burden of calling a special meeting which also translates to added expenses. A few 200-300,000 share days, and we my friend are off to the races.

To: Mr. Jens Tingleff who wrote (367)	4/29/1999 9:49:00 PM
From: Timothy R. West	Respond to of 563

The general public can't short stocks below $5. I'm sure there are exceptions, but most margin departments don't allow it because short sales have to take place in a margin account and stocks under $5 are not allowed to be in margin accounts. But brokerage firms can short the stock. In fact, brokerage firms can trade with each other and never deliver to each other. Often, brokers sell short to another firm and I've heard of stories where they have sold short more stock than exists. It goes unchecked because the broker isn't required to go out and borrow the shares to execute the trade, they merely promise to deliver the stock at some later date. What is my point? Short interest is helpful to watch if you understand who is short and what their financial resources are. Trading is a game and should be treated as such. More often than not, whoever has more money wins. So, find out who has the most money and find out what side they are positioned on and try to think from their perspective. If you were trying to buy up all the stock in the market that you could, how would you go about executing on your plan? Seriously, how would you do it? A: Buy up the stock too quickly and you'll get too many people jumping on your bandwagon and buying your stock ahead of you. B: Buy up the stock too slowly and you'll never get your position. C: Buy up and sell down the stock at opportune times should shake off the weak, front-running, trend-following longs. It usually takes a lot of stock to move a stock up, but it can take very LITTLE stock to break it down hard, especially at opportune times when the market is thin. So, buy up 100,000 shares from 50 cents to $1.00 with an average cost of $0.75 and then sell 20,000 shares at just the right time to break the stock back below $0.75 and then stand and buy up another 100,000 shares from the weakling sellers. They buy another 100,000 on the way back up to $1.00 and repeat as often as possible until you can't seem to collect enough stock. You get the idea... the more the stock oscillates around, the healthier it is and the more big players are in the stock trying to move in and move out of big positions. Watching volume is key. That is why I'm interested to see what the person in the previous post sees in the form of block activity. A great book to read on old stories like this is Edwin Lefevre's "Reminiscenses of a Stock Operator" commonly known as the life story of Jesse Livermore. Enjoy!