Gastem Inc GTMIF

What this all about? Can't be great news!

[my2bits]

What is up with all you guys thinking that is cannot be great news? GMR has not released any specific NR other than private placements since December ‘06. Now that the company has a halt everyone seems ready to go into a panic mode. GMR will release a NR on Monday following Friday's halt. There was nothing wrong prior the halt why should there be something now. If you done your DD on the company you know that management and the company’s mission are on target. The only element that weights on any company like GMR is the price of Oil and especially gas. If the supply curve and inventories are high then that will impact negatively on Oil & Gas stocks. The reverse, demand increases and inventories are lower, will impact positively. When you state something on SH boards try to substantiate the information with verifiable facts as it will encourage the same from others. Now as for Monday’s NR; I do not expect anything dramatic but do believe that this will not be the sole NR of the week. There was panic however from those who shorted the stock – lesson learned. Those who short volume from 132,500 to 510,000 (between 2006/09/15 and 2007/01/31) were anticipating making a quick buck. Look what happened between 2007/02/01 and 2007/02/15 (11 trading days) they had to cover their positions; they must have been in a tizzy? The short volume dropped by 460,000 to 50,000. Short selling is selling something you do not own with the expectation of buying them back at a lower price thereby making a quick profit. Say you sell (short) shares (that you borrowed from your broker) at $1.00 and expect to buy them back at $0.75 making a profit of $0.25. However, what if the shares you borrowed from your broker (sold short) go up then you end up having to buy them at a higher price and thereby up with a loss; not for the squeamish. This is just what happened from February 1st to the 15th. GMR’s short balance was 132,500 on 2006/09/15 and 510,000 on 2007/01/31 an increase of 377,500 while the stock price was mostly below 0.30 during the same period. Then on 2007/01/30 the stock closed at 0.50 and rose to 0.75 on Friday’s close. Can just imagine the panic from those who shorted the stock! They must have been running all over the place trying to rid themselves of their position. Lesson learned. The short volume plummeted to 50,000 as of 2007/02/15; the shorts had to buy back 460,000 shares during that period. They must have been crying. Now maybe they will leave well alone and move on to another stock?