Ascend Communications (ASND) Message Board

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Technology Stocks : Ascend Communications (ASND)

ASND 205.50

-1.5%

Dec 5 9:30 AM EST

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To: giles who wrote (10080)	8/28/1997 11:47:00 PM
From: uu	of 61433

Just curious --- Is it possible (i.e. legal) for someone like ML, to start shorting the stock lets say a week before (or even a day before) thye come up with some sort of downgrade/negative comments on a stock? I know after the 1929 market crash congress passed many of the current SEC rules, but dont know if it is OK for someone influential to actually short or sell its shares prior to them expressing negative viewes on the stock? A friend told me analysts will never make illogical negative comments to affect a stock since they will be playing with their reputation and they eventually become like the boy who cried wolf. But then, if an analyst makes huge amount of money for his/her special big clients, why would he/she care about his/her reputation anymore?! Besides once the negative comments are made and the market goes into panic and sell off begins, even if the company ends up proving the analyst wrong, he can always claim that when he made his comments the stock was 10% higher and therefore at least in the short term he was right! Anyway, just curious about the legal issues. I am sure there must be some. Or is there?! My main reason for bringing up this issue is because the very same ML that made negative comments on ASND made similar negative comments about Intel about 3 months ago (I do not recall the name of the analyst now but I am positive it was from ML), the stock went downbig time but after their earnings it went up higher than ever before! I wonder if that analyst's reputation has been damaged at all for making a jack ass out of himself?! (or is he a hero among many of his special big clients)?! If this to be the case I am puzzled as why congress does not look at the dirty game that is going on in the market more closely? Regards, Addi Jamshidi

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