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Re: captain_ameritrade post# 22591

Friday, 03/16/2007 5:58:37 PM

Friday, March 16, 2007 5:58:37 PM

Post# of 131532
Captain Ameritrade,

I agree with most of what you state in that shorting does play a major role in driving the price of most pinksheet and OTCBB down. The fundamental difference between those stocks and INXR is that most of those stocks are crap and INXR is not. Once it becomes clear to MM's that a stock is one of those very rare stocks on the pinkies or OTCBB that is not a total POS, and that it has a real business plan and good management that will see that business plan to fruition, then they will stop shorting it. I believe that is what we have seen this week with INXR coming off the SHO list and the greatly reduced volume. Remember the MM's make money whether it goes up or down. Many traders in the micro-cap arena assume that MM's are holding down a stock by shorting it when, in reality, the stock is a POS and that is why the MM's are shorting it. A classic example is USXP. USXP's CEO constantly is claiming that his stock is being naked shorted meanwhile he continues to increase the OS to the tune of 15 billion last time I checked. USXP consistently loses millions of dollars every quarter. What would make someone want to go long this stock, the 15 billion OS or the millions in losses each quarter? My point is that all MM's care about is making money and if they can do that easier by shorting then so be it. MM's short USXP because it is a POS. But if a stock such as INXR reveals itself to be the "real deal," then they are not going to short the stock for the sake of shorting, especially when it exposes their P&L to catastrophic losses which, in many cases by the way, the individual trader is liable to his firm for. In my opinion, this week's trading has indicated to me that the MM's have become aware of what is coming down INXR's pipe and they have decided, rightly so, to stop shorting the stock. Once significant news hits the wires we will be off to the races in my opinion. Thanks and have a great weekend.