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Non-Tech : AMERITRADE HLD A (NASDAQ:AMTD)
AMTD 1.000+1.0%Feb 9 3:50 PM EST

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To: the Druid who wrote (102)12/3/1997 12:51:00 AM
From: Gil Gilbertson   of 1848
 
CONSIDER THE FOLLOWING... AMTD IS A VERY THIN STOCK.
It only has about 2.5 mill share float out of 14 million. That makes it
very hard for the funds to enter and get a sizeable position, too
hard to get out also with volatility of a thin stock. AMTD is spending a fortune advertising and has already said it will impact
earnings.....LIKELY scenario is that it will issue secondary to raise
capital and make more shares available. Also likely to split before
too long, same reason. The larger short position is a real asset to
whomever does the underwriting of a secondary, it means they have very likely already sold a sizeable portion of the issue or they will take the stock higher and force the shorts to cover .... We shall See......thats the near term scneario IMO and the long term is a no brainer...we are in a telecom revolution and ultimately most trading will be done at a discounted price on the net, which will be improved ten fold in the next 3-5 years...Yankee Gil
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