Got a reply back from HRCT,
thought all longs would be interested.
Hi Jim,
Actually, business continues to move forward. I suspect there may be 3
possible reasons for today's activity. The Shareholder letter by Dr. Phan
was sent to our mailing list late in the day. Although it was a press
release from early in the morning, some people may have been unhappy with
Dr. Phan's open statements that the stock market is in a negative
environment, the US faces a possible recession, which may slow the
development of Multi-nationals in Asia and China. Also Hartcourt, due to
lesser availability to Venture Capital, is mainly focusing on existing
projects (those already announced or not announced but being worked on
internally) while not actively pursuing new projects. Dr. Phan is heading
to Hong Kong today, and will work with Yuanta Securities for the
StreamingAsia IPO. Naturally, any underwriter like Yuanta would prefer to
delay an IPO until the market environment is better. So hopefully the
market environment will stabilize in the next 2 weeks. These delays may
prompt a shareholder to sell, but unfortunately if they place a market
sell order, the OTC market makers are notorious (by legend) for taking
advantage of a market sell order. I have "heard" stories of a person
getting only 30-50% of the current trading value when they issued a
market sell. Because of this, most OTC investors have been warned by
other never to use Market orders. If you look at today's stock chart,
you'll see the stock hit .61 near the open, and then dramatically hit .31
within 20-30 minutes from the open. It should be a market maker short
selling to cause activity since Hartcourt share volume has been low.
Often Market Makers have various strategies to increase volume, since
money is made by a Market Maker during each transaction. On another
front, April 4th is 4/4 and in Chinese superstition, 4 is symbolic of
death, so many Chinese investors rarely buy or take risk on 4/4. Think of
Friday the 13th, but accentuate it to get an idea of the psychology,
which is often self-fulfilling.
Thank you for your interest in The Hartcourt Companies.
Hrct@Hartcourt.com
At 02:17 PM 4/4/01 EDT, you wrote:
