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Thursday, 11/09/2000 5:47:17 PM

Thursday, November 09, 2000 5:47:17 PM

Post# of 41875
RE: VDOT

http://biz.yahoo.com/bw/001109/il_virtual.html

First off were there really any longs here who thought that in an uncertain market going up 300%+ in 7 days wasn't going to be followed by a pull back? Especially when we didn't get any PR during the steep climp...

I saw a post down there by manso talking about shares in the hands of longs supporting the price, to which there seemed to be a bit of agreement.

So if you had completely botched a roll here sold at 1.60 and the got back in around 1.15 you would have added over 19,000 shares to your holdings and not spent a dime (well commissions) to do it. Thus taking that many more shares out of the float and adding it to the long colum...19K! If you timed it a little better and got a bit closer to the top and still didn't get back in till today...you get the picture...somehow this is construed as bad...

Buying and holding is good and having maximum amount of shares when this thing takes off is good too...

If you think that this run was all day traders and had nothing to do with MM's going short near the tops on Friday and Monday morning I think you are dreaming...do some DD on explosive stocks past picks and how much MONEY (not volume) flowed in after...Friday we were well over $6 million that was a lot to attribute to explosive picks, couple that with all the other days and tho' day traders had a part of it, surely they weren't the major force. IMO So who was?

Anybody read the articles about Market makers making a market? I posted some of them last year. Amex, NASDQ and NYSE don't have quite as much price or volume volatility as the OTC. The rules are different here on the OTC and you can either use this knowledge to your advantage or not...

Sinclair and a lot of you discount the MM's too much. They saw an op to make 50 cents a share and they took it...think about going to Vegas and hitting a jackpot for 200,000 half dollars...too tempting for MM's...I would make a WAG that 200K is low...

Today we get a nice PR (which everybody might want to forward to the webmaster at your ISP; Maui Net sure could use it...) and they run the price right thru the teens and into the 20's and even the low 30's...choking off volume...

Sample made-up MM senario, no basis in fact, just my wild imagination:

"So you wanna buy some VDOT huh...how bad you want it?" MM sniggers, gets on phone "Hey, you finnsih covering you shorts on VDOT?...Me either. They just put out a PR, make a few calls would ya and lets get this ask up past the point of buying tolerance...thanks..."

Unlike last time where they were trading amoung themselves to make it look like there was more volume than there was this time they are waiting to see what buys come in at limit and at market and raising the bid and ask accordingly...they aren't worried about the bid so much because they know about the outside fills they made over 1.50 and are confident people won't sell at a loss after just two days in any large numbers and if they do so what they'll scoop the shares and add them to inventory for later...

Ask goes up...buying subsides. MM to other MM later. "In this uncertain market we ought to be able to walk it back down, what do you think?"

"Sure but dont take it down too much...how are our board workers doing on RB?"

"Looks like they're selling it, got them blaming daytraders...and the company...we're pretty much off the hook."

"You'd think after all this time somebody'd figure it out..."

Pause to consider. Together: "Nahhh..."

FEPO JFSAG What do I know anyway...

Expect a miracle: although it should be obvious to all which way this is going over the next few months...


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