CheckFree Holdings Corp. (CKFR), the next Dell, Intel? Message Board

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Technology Stocks : CheckFree Holdings Corp. (CKFR), the next Dell, Intel?

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To: Dako who wrote (6992)	6/24/1999 1:56:00 PM
From: rumble_maker	of 20297

Manipulation explained... The stock announced they were going to do a secondary, the stock went down 11-12 points within a few days. This happened because of shorting. Professional traders know there will be ample supply to cover their short, so it is usually a good play, but covering the day of the offering is usually required. The companies involved in the secondary normally will upgrade and reiterate to make the stock go back up. This makes them look good for their institutional clients, which runs the most trades when compared to retail clients. The secondary was priced at $39, so when the stock is falling hard the next day, many of those shares were sold. The secondary was cancelled today, so anyone that sold the secondary shares are now short. Merry Christmas, Wall Street style. These clients are very valuable for the firms involved, so to make these clients happy they will artificially hold the stock down so they can cover. The firms will lose money in the short run to keep these clients happy. Think if you owned a firm and you had many clients paying you anywhere from .01 to .06 per share when they run their trades through you. On 100,000 shares at a time that adds up over a year. Now multiply that by hundreds of clients. The stock that went off before the open today was probably market makers running the stock up as high as possible, to suck in a lot of amateur money. They would then short the stock to these people to offset their average short price. Happens everyday on most active stocks! The amateur money eventually dries up and people start selling and the price goes down, just what you saw this morning. Still think they wouldn't hold a stock down like CKFR is being held? I personally think CKFR goes higher, but now you get a better picture of what is happening today. I teach trading seminars and everytime I explain something like this half the room is stunned that this is legal and allowed to on. It is unethical but legal. Which do you thin counts on Wall Street?

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