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Re: IH Member [Kris] post# 4452

Wednesday, 03/21/2007 11:49:43 PM

Wednesday, March 21, 2007 11:49:43 PM

Post# of 56800
Living. Because the MMs do not pay for the phantom shares they borrow from the brokers something called a trigger price exists. This is a ceiling on the price a particular stock can go to before the broker demands payment. In a case like this the trigger price maybe , say .0008. The MMs will try to resist this price so keep selling phantom shares until they ABSOLUTELY have NO choice. When the trigger price is hit, we have a scenario where an number of 'short' MMs have to buy back the shares they owe.. Mother of all short squeezes. News like we had today re a confirmed 20m A/S is virtually unheard of to the degree the MMs are oversold. I have to say I am slightly erring on disbelief here but as TPL states this is breaking news. If it is correct and R/M happens then I think Im rich lol

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