I recieved the following email today in response to one I sent into OTCNN Networks.
From: Jack Burney <jburney@otcnn.com>
Subject: Re: MM Short Selling
To: Lloyd <xxxxxxx@xxxxxx.xxx>
Well said, Lloyd. I'll probably use your comments in our Investor
Forum, to which we are now going to devot a major section of OTC
News Network.
Thanks,
Jack
At Friday, 30 June 2000, you wrote:
>OK, I've read just about All I want concerning the MMM. Now I have to
>post what I think about the whole mess.
>
> It is my firm believe that if the companies controlling the MMs, (I.E., Herzog, and
>Knight/Trimark) did not short the stocks, they would have to keep raising
>the bid to get investors to sell in order to have shares to sell to other investors.
>This would cause the stock price levels to be higher and we would start to see less and
>less companies with penny stock prices. This is fine with me. Let the market determine the
>price, NOT THE MM.
>
> The Security firms argue that they must sell short in order to maintain a market. I say
>B.S.!! If they would just raise the prices to meet the market, it would all equal out. For
>every buyer, there is a willing seller for a price. The MM are suppose
>to find that price, not falsely create it as they do with short selling.
>
>When a firm short sells a stock, they are selling what they do not have
>and raise the ASK while doing so. They then create a walkdown to scare investors into
>selling so they can buy back the shares at a cheap price to replace the shares they
>sold (which they didn't have) at a higher price. Does this seem fair to anyone? It doesn't
>to me.
>
> We are going to start seeing a lot of BULLS--T coming out because the
>Security Firms do not want to loose their GOLDEN EGG, the ability to short sell on
>a raise and then buy back on a walkdown. ALL created by the MM, not the market.
>
> There, I feel better.
>--
>Cheers,
> Lloyd
Cheers
Voluntary Disclosure: Strong Buy : Long and Short Term