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To: Keith Rosenblatt who wrote (254)	7/6/1999 12:11:00 AM
From: Mike Fredericks	of 977

Can you possibly explain to me why it would be trading at 57 Euros in Stuttgart, and 60 Euros in Munich? At first I thought it just might have been that one of the two markets closed earlier (and hoping that it was Stuttgart that did so), but it appears that they both open at the same time tomorrow. I was going to ask the same thing, but here's a little more detail... Stuttgart it was 54.50 x 57, Munich it was 58 x 60. So an arbitrageur could have bought at 57 in Stuttgart and immediately sold at 58 in Munich. For some reason, this didn't happen. I have no answers to this question, only guesses. Best Guess - and I'm completely pulling this from my rear - the stock has a thin float here in the US. How many shares exactly are available for trading in Europe? Most of the shares in the float are held by US retail clients who don't trade in Europe. Institutions could sell some shares over there but there isn't much selling going on (much more buying pressure, hence the 14 point run on Fri), and what US institution is going to sell this thing over the 7/4 weekend? Nobody is at work and who wants to sell this thing without seeing how it opens on Tues? If you had the guts to hold over the weekend, you may as well see how the stock opens. So nobody who is holding the stock is doing anything with it in Europe. Hence the 2 Euro (almost $2.00US) Spread. You can't really arbitrage something that you can't really buy. Anyone know volume for 7/4 in Europe? I guess we'll find out tomorrow am what happened 7/5 in Europe. -Mike

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