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Technology Stocks : ADC Telecommunications

ADCT 4.010

+2.6%

Feb 6 9:30 AM EST

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To: M. Charles Swope who wrote (908)	8/18/2000 6:40:05 PM
From: Jay Mowery	Read Replies (1) of 1944

M Charles, I can give it a shot? Believe me I was kinda bummed but not that surprised. I was initially surprised by the volume of selling. However. If you consider ADCT Split 2:1 in July and I think the previous split was January of this year? Anyone holding 5,000 shares in December would now be holding 20,000 shares with a very low cost basis. So.........In trying to understand? If I were holding that many shares? I'd probably take some profits at this point. My position doubled in July and it's only 1500+ shares. I considered taking some profits but had already done so when ADCT bought PAIR. So I didn't however I did think about it. Which I'm sure the market would love. The longer term picture looks very good for ADCT to me and I'm willing to hold in spite of high volume down drafts! (After all! I used to own PAIR!) :-) You combine this with day traders movin' in and out of the stock on a daily basis? It appears to add to the intensity of the situation. Now Keeping in mind that today is options expiration? I looked at the open interest on the call options for August: From the Strike Price of 45 down to 32 which includes the strike price of 42 1/2 which is 1/8 of a point below that strike price? There is a total of 25,975 contracts with open interest. That adds up too 2,597,500 shares!!!! With the Closing price today?? That's a lot of contracts. Now it depends who it was that was buying and selling contracts. (Just a Thought) If Smart money was buyin' those contracts?? Big Players?? From smaller sellers who were worried about price and wanted to hedge their positions up to 42 1/2 or even 45? The smart money Big Players could pick up the shares by exercising out the smaller players. And if they also happened to be the ones selling the 42 1/2's and 45's? They keep the premium. Lastly if other players get nervous at the selling and sell to feel safe? Hey! That works too. I noticed there were a LOT of SMALL BLOCK trades. 5,000 to 100. Which leads me to believe it was a lot of profit taking along with some nervous people. I'm figuring that some of the Big Blocks were also buys in that one Firm initiated coverage today. (I forget who it was). But anyway M Charles, I didn't really see it as a negative thing. Question I had to ask myself a couple of time was: "What's changed except things look better!" Also adding the point of sell on the news! BTW: I didn't see where it violated and T/A on the 30 minute or Daily charts. Sorry to be so long winded but You asked so I thought I'd give it a shot and try and Help?? Hope it did! Your buddy, Jay

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