OCGT again Message Board

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Biotech / Medical : OCGT again

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To: Stock Puppy who wrote (33)	8/23/1996 9:11:00 AM
From: Jack Ucci	of 283

A broker once told me that buying at the bid or closer to it than to the offer is possible, and that this might happen when the market maker attempts to anticipate the direction and volume of the stock price. The major risk here is that your limit order will not get executed and that you miss altogether getting a position in the stock. That has happened to me several times. My broker is the discounter R.J. Forbes. Their tel# is 1-800-488-0090; they also have a trading desk #, 1-800-275-6368. You could get a package of info from them. Since all my trading is in NASDAQ, I am familiar only with their fee for OTC: $35 min and $35 per transaction (same for 100 as for 1,000,000 shares). So if your purchases come in 1000s rather than in 100s, this is easy to swallow. eg I tried to get 15000 OCGT at 1 25/32. At the time of the order the spread was 1/23/32 - 1 13/16. A few seconds after my call the spread moved UP and I thought I got zip. It stayed up with 1 25/32 then becoming the bid. At the end of the day I found out that I got 7230 shares! The stock ended at (I think the ask) 1 29/32. Thursday (yesterday) the volume was strong but no trade above the high of the day before and the news was out and the stock dropped some and after 2 or 2:30 I put in that crazy limit for the remainder of 7770 shores and very quickly the order got executed. Total commission on 15000 shares was $70. I'm sure you have read about discount brokers. Many of them get stock for their clients at prices lower than the limit you specify. Allegedly they do this through marketing deals with suppliers of the stock. I think you have to expect different results with different stocks. In the past I have used other brokers and on (very) rare occasions my broker at one of these name houses got me some stock at the bid(!!!) maybe because he felt pity on me for suffering one or more losses or because another of his clients wanted to dump his shares. This was in a stock that brokerage made a market in. Back to OCGT. The broker was disappointed that the news was not the big one he expected, he admitted that there is substantial resistance at 2 and most importantly the move off the Small Cap list is not so imminent. I think I face considerable risk here ST with this last two batches. He recommended flipping out if the stock goes through 2 and then buying back if there is a sell off on more good news. I hope this story has a happy conclusion.

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