First of all they are very rare.
Very few pink sheeted companies are as even remotely successful as Phoenix Associates. They are probably more well-suited for a short squeeze than any stock that trades today. We are getting very close to being in one. I've watched the time and sales every day over last year. The short position in this company is huge. I know it's just a matter of time. The longer the shorts wait, the worse their situation gets because they have to continually short to keep the stock down. With this stock moving the way it is on relatively light volume, it tells me they don't want to short it anymore. I was talking to Mike Mullshine the other week
and he told me about two companies that have a short squeeze.
The first one was Prestek It went from a dollar to 205 dollars before it was over. The second one was Sensar, it went from $.25 to 93 dollars in three weeks.
I've been trading pinks and bulletin boards since 97.
Back in 99 I ended up buying a stock called Haber at five cents. It ran to $.75 in a squeeze, and unfortunately I was not smart enough to sell when it was over. I did get out at about a quarter on average, so overall it was still a good investment. This company fundamentally is a world apart from that company. I could see this stocks trading at $.40 just on fundamentals over the next year.
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