Strategies & Market Trends : From the Trading Desk


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To: m-top who wrote (2494)2/1/1998 11:37:00 PM
From: Ira PlayerRead Replies (1) of 4969
 
There have been reports (I don't remember where I read it) of small caps with large inside holdings pulling the following:

1. Insiders place shares in Margin accounts at various brokerages.

2. Stock price appreciates, short sellers start to hit it.

3. Insiders change the account to cash. All 'borrowed' securities must be replaced within 3 days.

4. Upside pressure results from short covering.

While there are only a limited number of securities where this could happen, it is possible.

Enjoy the ride,

Ira
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