IT Group Holdings (fka ITGL)

[phoney]

Actually, the volume has been quite low. I mentioned before how current holders don't have much to gain by selling at this point. The danger lies in offshore short selling and the MM's dumping what they are required to sell for their 'customers'.. Despite all the bogus hype about 'naked short selling' causing problems for certain OTC's, it is usually the MM's doing the selling. They are given a certain amount of shares as commision in exchange for dumping large amounts of stock for certain 'individuals'. This usually happens during a news release but can eventually extend the downward spiral. The offshore shorts can come in at anytime and jackhammer you down into the ground, but this practice may or may not be as rampant due to terrorist funding investigations. Still, most guilty OTC's will release a statement saying they have been victimized by 'naked shorts' when they themselves are the actual culprit. Not to say ITGL will be guilty, just something to watch for.

ITGL said they had ~$3M in cash for operations going forward, same as last quarter?? How come last Q's loss didn't reduce that? Did more cash come in due to MM dumping? In the end, the company and founders are funded through dilution, whether or not they can post profits and 'wow' the public into buying feverishly during these episodes is the key. Right now it's not working, that's why I'm looking for a new low after the dust settles following a high volume event.

Plus, the major markets are probably going to suffer some as the credit crunch intensifies. The lowering of our discount rate and the fact that 4 major U.S. banks just borrowed to stay afloat is the scariest financial event since 1929 - despite the 'hooray!' response from the markets, I view it as a progression from denial to fear. The next stage can lead to panic.

It's kind of like holding up a sheet of plywood during a mudslide, you can breathe easy for the moment.. The markets will exagerate any downturn in order to capitalize. They will also applaud a surprize interest rate cut when it is really an admission of a severe problem. We are at a tipping point. The consumers either continue to spend or they hold back. We are the key. Fear usually wins. Slower auto sales are one of the first signs after a housing crunch for two reasons. One is consumer fear, the other is the inability to provide the risky loans needed for most auto sales.