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Politics : Ask Michael Burke

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To: Knighty Tin who wrote (26591)	3/11/1998 8:02:00 PM
From: Rashley	Read Replies (1) of 132070

GD, Yes, you can buy big blocks and keep the price from running away from you if you have a broker on the other side who really likes the short position. That may not be the broker's opinion on the stock, but he may have a convertible or a warrant or an option set up long against his short and is willing to play for the commission, the spread, and the rebate on the short sale. Usually, the broker runs out of hedges after a while and he backs off. We will see if it happens in CKR. Isn't it also possible for institutions to buy only on downticks? I don't have access to Level II, but a couple weeks ago, I watched CERN trade between 19 1/5 and 20 1/2 with 5 or more times usual volume (real time with Datek). It just didn't move at all. Finally the buying slowed down and now the stock is heading back up. I thought someone established a rather large position, then bought at the ask to create a little momentum and now they have a 15% move.

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