COMS & the Ghost of USRX w/ other STUFF Message Board

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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF

COMS 0.00130

-13.3%

Nov 7 11:47 AM EST

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To: MulhollandDrive who wrote (5793)	9/25/1997 12:28:00 PM
From: Jeffery E. Forrest	of 22053

Thanks bp. It has occured to me that a huge spread like that would also deter daytrading. Also got me thinking (uh-oh<g>) that since they (MM's) are in the catbird seat in establishing valuations, perhaps a high ASK and low BID would indicate some implied value that I don't know about yet. Just like a pawn shop, they can ask an inflated price for "X" because they know that demand and valuation is there. Likewise they can offer you peanuts when you go to sell "X" because they know that "X" is worth more than the bid OR the Ask and are more than willing to buy "X" from you at lowball prices if you are so inclined to "give it away" cheap. For ex.- I played HGSI a while back when it was CHEAP historically ($30-31). The spread was pretty outrageous for a bigger stock like HGSI. (3/4 to 7/8pt. spread.) The spread stayed that big until the price got up to more reasonable valuations (above 38-40). Now, it has around 1/4pt. or so spread. Maybe I'm reading too much into it? My head hurts.<G>

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