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Re: CSykes post# 1258

Thursday, 06/22/2006 12:15:51 PM

Thursday, June 22, 2006 12:15:51 PM

Post# of 141623
MM "A" borrows from MM "B" to short a stock. MM "B" then borrows back the shares from MM "C" to cover what MM "A" shorted. This type of settle is done every 3 days in the market. It is a vicious cycle that continues to go on until actual shares are covered. When the 400,000,000+ shares were traded this month and there was no longer a supply of actual shares the MM's sold naked from .035 down to where we are now..... normally they can shake the weak hands and cover their position. The problem here is that they shorted way to many shares that can not be covered at this point. When the buyback commences and the float dries up further, it will be that much tougher for the MM's to cover. This is actually no big deal for them, they will spike this to .lets say .09 to cover and then start shorting again lets say all the way to .15 and then tank it to .05 to start the cover again. By default of this stock being a pinkie, it was shorted. They never knew that this would turn out to be a solid company. They still win because 9 out of 10 that they short are scams of offloading shares by companies. FGFC is the opposite. The game plan has changed for the MM's. This is soo typical, in a few weeks FGFC will be .04+. I have no doubts that FGFC will hit .15 this year.

Business calls again today!

Good Trading!