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Click Commerce, Inc. (CKCM) Message Board

  • xymnto_7 xymnto_7 Jan 8, 2005 12:01 AM Flag

    INCX selloff could happen here

    This makes perfect sense in a number of respects. When a market is euphoric, buyers create large margin balances that create excessive shares available for shorting. When the buyers dry up, a lot of those shares are still available to short. That is why we can have excessive downdrafts in a market that has had a huge rally rise.
    It also explains why a stock that many people are holding a lot of shares of, that has had a big run will come under so much pressure. Everyone is buying more on margin to average down, and that creates more shares available to short. Sellers and fresh short shares keep continual pressure on the stock.
    How many times have you seen a stock have a great run, then it comes tumbling down without the breath of holding an uptick? Finally, everyone gives up and tosses in the towel. Well, when that happens, everybody's account is no longer carrying a margin balance and the short shares start getting called to cover. All of a sudden, the stock starts walking back up with out any interference whatsoever. That is the shorts covering on the shares they shorted against those you bought on margin. They are getting a call to cover immediately.
    So, here is the plan. You need to consider doing whatever you can to effect a short squeeze on the stocks you own the most shares of that have had a sizable downdraft of late. If alot of people can immediately get rid of all the crap in their account that isn't performing, or take a couple winners off for profit, then that can reduce your DEBIT balance in your account so you have NO MARGIN BALANCE. Do whatever you can to get your account with no margin balance so you are playing with ONLY the cash in your account.
    Once you do this, make an immediate call to Ameritrade, or whoever your broker is, that you are requesting the shares of your holdings not be made available for shorting. Have them confirm it in writing that they have done so, and also request that the shares that were lent out on your positions be immediately called to cover.
    Put your broker in the hot seat. Make them earn their commissions. Don't hang up with them until they guarantee you in some fashion that your shares are going to be called to cover.
    As an example, let's say you own 5 stocks and your largest position is 10000 shares. Your account balance is 200,000 and your carrying 250,000 worth of stock. If you can pare off just one, or a little of all of them to get your balance under 200,000, then you immediately effect a call on all the other shares you own that are being held short by someone else.
    Now, here is your job. Take the information I've given you, and hit all the message boards with this information this weekend.
    Tell everyone to spread the get back just under their cash level and then call their broker! It should be enough to cause some panic short covering and get some of these MMs to cover their deficiencies now that they are being watched by everybody.
    If it pops up on several hundred message boards over the weekend by several hundred people, it could spread like wildfire, reverse these markets next week, and everyone will be back where they should be...and the shorts will be back to losing money once again.
    Please, everyone try. All it costs you is a few minutes of your time to try.

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