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Microcap & Penny Stocks : Leah Industries, Inc. (OTC-BB-LEAH) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew H who wrote (1931)	5/25/1999 9:10:00 AM
From: Dan O.	Read Replies (1) \| Respond to of 2153

From my perspective it appears that only one marketmaker is handling the stock. The stock is not listed with any exchange or affiliated with the National Quotation Bureau (the pink sheets) so the trading is totally unregulated. The market maker has no obligation to post bids or asks, whether his or anyone else's. He has no obligation to make any trades, unlike NASD, for example where the market maker must honour the size and price of best bid and ask. He does not even have to report the trades he makes, so there may be trades going off at a much higher level when we are seeing the one reported at .30, or whatever. With his ability to keep everyone in the dark as to the supply and demand and prices he has the ability to steal us blind if we want to get into or out of this stock. If you sell shares to him at .50 he may be selling them to others at $1 and not reporting. When news eventually comes out with earnings and book value we are going to see some royal screwing around. If we see $2 or 3 posted the market maker may only be buying for .75 and selling for $3. I would expect to see a rise in volume to precede any news and we haven't to any real extent had that yet. But news has to come out eventually. After the news I would expect the filing with the SEC of the 10K &10Q which are required for listing on the OTCBB & NASD. The filing for listing status can take from 2 weeks to months. So I expect that we will see some pretty wild swings posted in the price and volume from the time of the news until the listing. If anyone really wants out of this stock during this time remember: you are probably giving at least half of your sale price to the market maker. If you wait until it is listed (all other things being equal) you will get twice as much for your sale. The flip side is that you will probably pay more than you should if you want to buy. However, if the income and book value come in as expected and show the stock to be grossly undervalued (the reason some of us got into this stock in the first place) and you can buy for (say) $3 rather than $2, it maybe worth it. I just hate it when market makers or the government get more than their share. (off soapbox for now) Dan PS: If anyone can add to or correct any of the above please feel free to jump in.