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Technology Stocks : Newbridge Networks

NN 16.41

-1.8%

Dec 12 3:59 PM EST

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To: pat mudge who wrote (12540)	8/4/1999 10:47:00 AM
From: Tunica Albuginea	Read Replies (1) of 18016

pat, what can we conclude from today's activity? 1st half hour of trading only 11000 shares traded at 26 5/8. In medicine, signs of disease have greater meaning & validity if they are extreme: either strongly pos or strongly neg. Here with NN, we have NO VOLUME at the start. It could mean: -there are no sellers -folks think 26 5/8 is fair value. -there is no short selling;( shorts are defined as brave souls in fair weather; it appears that the weather may turn stormy ahead for them ). -people don't seem that scared that NN will not meet eps -previous day's price swings have not phased anybody out of the stock And I will venture a guess: -people are waiting for an announcement. Now, 1 hour into trading volume has swelled to a big fat 75000 shares and price is up a fat 1/16 th!!! What do those extremes mean? -Insttitutions are buying again.Institutions are defined as elephantine structures with lots of cash who are very a)self conscious about their weight and b)feel that others think that they are rich and thus want to take advantage of them by jaking up the price of a stock. So these brave souls go to extreme lengths to avoid being noticed by the hordes of day traders out to do them in. -so they will buy in teenies and decimal fractions. A little at a time. They agonize over every trade if it's 2 cents over. - at times they even act as bullies:selling large amounts of stock to scare them little day traders. Serge for example could be mistaken at first glance for one of those bully type institutional scaremonger,shortsellers except for the fact that he has reassured us that he isn't so that's good. Well, after the dust has settled down on NN from the last few days of furious trading and price swings and so far 105 000 shares traded I conclude, some would say bravely, that institutions are again trying to pick up stealthily more shares and that they perhaps know something we don't. I guess time will tell, TA -

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