Carl,
"a lot of memory makers are not bothering with RIMMs because there isn't a lot of demand".
Please tell me the explanation, in economic terms, of there not being a lot of demand for something, yet its price in the free market carries a premium compared to an alternative product (SDRAM) that is greater than the premium of the cost of manufacture.
Please don't tell me that you are just an engineer and have no thoughts on pricing of products or stocks. That would be another lie in light of the following memorable post that explains what you do "as a business":
To: unclewest who wrote (35769)
From: Bilow Friday, Dec 10, 1999 1:21 PM ET
Reply #35770 of 55115
Hi unclewest; The round trip commission cost (marginal calculation, ignoring seat fee) on those 50 shares was $2.80 for me, plus the SEC fee... My profit before seat fee was about $9. Not bad for a few minutes of screwing around.
I also pay a "seat fee" which is added into all my share costs for the day, but it is charged the moment I sit down. Of course I don't know what it will add on a per share basis, but that doesn't mean I shouldn't take trades that beat the marginal costs, just that I can't trade on an overall basis below the marginal costs plus the seat fee costs.
Basically, I do this as a business. I like to make a lot of relatively small profits during the course of the day, rather than try to swing for the home run. So I count profits in terms of dollars per second, rather than in overall percentage moves. The idea is to keep my cash and attention ready for the next trade. Trading is a somewhat more complicated business than a lot of people think.
I'm just slumming on RMBS today, cause I'm too sleepy to do my usual scalping of INTC, MSFT and DELL. But the stock has been kind to me, nevertheless. Best of luck, this puppy has to turn sometime, maybe today is the bottom.
-- Carl |
