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Technology Stocks : RadiSys Corp

RSYS 1.720

+0.6%

Dec 11 4:00 PM EST

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To: Richard Karpel who wrote (633)	4/30/1997 10:28:00 AM
From: Tnsplyr	of 1472

To Richard, and ALL: I have traded in and out of Radisys several times and live in the same area as the headquarters of Radisys and Techtronics as well as one of the major Intel installations. It is obvious, that in addition to normal trading activity, Radisys is being manipulated. Here are some possible factors that allow it to be done. 1. Margin Accounts-As stated earlier, accounts opened as "Margin" accounts and stock purchased on margin are retained in ownership by your brokerage firm and can be and will be used as "borrowed" stock to create a short position. 2. The person making the market on stock exchanges ie. NYSE is a "Specialist" - I believe almost always one person per stock. His/her job is to facilitate the orderly matching of buyers and sellers, going long or short, from his/her own account in order to accomplish this. The NASDAQ is not a floor exchange; trading is done I think almost all by electronics. The person here is a "market maker" and there may be several trading one stock issue. They are trading in and out of their own accounts, not necessarily matching all buyers and sellers the same way a Specialist does. They have an easier time of increasing bid-ask margins. 3. Because of screw-jobs from these market makers on bid-ask margins in past years (some as high as 2-1/2 points) the SEC has required the NASDAQ to "phase in" full disclosure of "Limit Orders" to all market makers. This favors the small investor by requiring that all market makers be told about limit orders that may have better Bid or Ask levels than the Bid and Ask that "one" market maker is quoting. Problem is the "phase in" has included only 500 of the stocks traded on the NASDAQ and Radisys isn't one of them. These few factors combined with deep pockets I believe allows some of the big boys to manipulate stocks with small floats such as Radisys. What can we do?? 1. Ban together against the short position. If you own Radisys ong in a 100% equity (nothing margined) you may call your broker and say you want to change the status of your account from a Margin to a Cash account (temporarily if desired) or request that you want your Radisys position transferred from a T2 (margin position) to a T1 (cash position) - probably easier and quicker than the first way. Result: Immediate shrinkage of the number of shares available to borrow to create short positions or maintain existing short positions. If the trend is big enough--more easily accomplished with the small float of Radisys--the broker will instruct short sellers to cover their short position or have it done for them--at the market. The more Radisys longs that know this the greater the inpact. Could the Net be used to inform more Radisys owners??? 2. Be patient and wait until somewhere around August 15th, the date the SEC says that the NASDAQ must fully comply with full disclosure of limit orders for all stocks traded. 3. Call NASDAQ and complain like hell that trading in Radisys is B.S. Maybe we will get full disclosure sooner. Good luck to all the Radisys longs. I think that is eventually the place to be.

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