Softbank Group Corp Message Board

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Technology Stocks : Softbank Group Corp

SFTBY 63.73

-10.0%

3:59 PM EST

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To: TobagoJack who wrote (5036)	4/29/2000 2:40:00 AM
From: Edwin S. Fujinaka	Read Replies (2) of 6020

Although I have always said that trading Softbank in the US is too difficult, I finally made my first attempt to sell a tiny bit of Softbank as an experiment. I placed an order to sell 100 shares of the new Softbank at $270 GTC on Thursday with the order to be executed in the US OTC Market. The high trade on that day was at $280 but the close was at $265. My $270 trade did not execute. On Friday, I notice that the high trade for today was at $275 with a close of $270. Again my order did not execute. Earlier on Friday Schwab was quoting $235 bid and $265 asked. People who really wanted to buy today were obviously bidding even higher (hence the $275 high trade for today). I presume that the market makers are taking those high bids for themselves. You'll note that the spread between the quoted bid and asked is 12.7% so a round trip could have over a 25% cost. If the market makers skim off the best offers all day long for themselves, they stand to make even more. Of course this is why it is almost impossible to trade Softbank. It's like a casino game where the house takes 25% or more on every transaction round trip. Perhaps my interpretation is not accurate, but I would be pleased to hear some other interpretations. The old spread was pretty outrageous at $50 between the bid and asked, but the new spread is equivalent to $90 now after the split ($30 X 3).

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