Hi Philip: She touched 41-3/4..and the bid/ask size switched places
and she started back up..and looks like the shorts started covering,
not sure they all did..if she Gaps up in the morning..she could
go back to her 47..or even 50 level, kind of fast..on the other
hand she may just play around the 44 to 45 level untill after
friday..
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It looks to me they are playing a sort of card game using several computer programs..when she gaps up they sell off..when she
settels down they buy back, ( but this has an up bias to it )
like if I sell 50,000 shares.at say an averg 45..that equals
$ 2,250,000
well I don't just buy back 50000...and take the profit..I buy back
as many as I can get for the $ 2,250,000..lets say my program
is a good one and I get back in for an average of $ 42
I now have..53,571 shares..( of course there is cost ) but
lets say I only gained 3,000 shares to the good..not bad..considering
the shares cost me zero..
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Lets say there are several of us in this card game..the rules are
buy back more shares on the down side..untill we agree to cash in.
as long as we all play by the rules, the stock will tick up in
price because we are doing a buy back program...and in effect taking
shares out of the float..this is importent. As we want to tick her
up as high as we can before cashing in.
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In my mind I see them short selling aginst the box..or having
bought calls back when she was in the 20tys..that covers their
rear..some of them likly picked up stock back then..this short
game has been running some time now..they accumulate; the one
who winds up with the most shares, will come out winner at
cash in time..u have to know with a company loseing as much money
as AOL is, and with no book value..the only way this stock can
maintain it's level..is to support the price..by easing stock
off the market..at some point..when no more, or not enough
outside mullets come in the shorters will cash in and you will
hear some sort of bad news that every one will blame it on..
and even that is subjet to be riged..but "when" this baby dives
she will dive like a rock..it could be 6 mo from now..they will
hold it up as long as they can..and each one of them will accumulate
as much as he can...any out side shorts or people who do not
under stand the rules will likly get burned several times if
they go aginst the bias..and don't have their rear covered..
this is a great stock to short aginst the box..but you should
have got your shares back when she was cheap..look out for her
I don't know when she will dump..and maybe some of the short
players don't either..but the game will run it's course..it
depends on how many mulltes and for how long they can sucker,
them in. These guys are pros be carefull. Don't short aginst
the box if you payed very much for this stock..unless you cover
all the bases..it can be done..but I hate to try and explain
it..likley I'd go miss something, and might give some one the
wrong idea..if she keeps dancing up and down..I may try to
enter it in a way that I'm not just doing options, with the
options I have to deal with the hidden spread..and commisions,
maybe I'l get some in the money options way out to cover my rear,
and start shorting my self..it's cheaper than buying and selling
options..the pros are making a bunble off this stock.
Man are the long longs going to cry when this baby does fall.
Jim
Ps go read the thread on ESOL..
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Jim
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