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Technology Stocks : ADSOD-Adaptive solutions

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To: tonyt who wrote (432)	4/4/1998 5:37:00 PM
From: Follies	Read Replies (2) of 477

Tony, I disagree. Spreads on all stocks have been reduced and I see that trend continuing as more individuals play the market maker game (see the latest Forbes with the trader on the cover. The spread on ADSO has been 1/16 to 1/32. After a 5:1 you would expect spreads to go from 5/32 (~1/8) to 5/16 (~1/4). I bet the spread average will be closer to an 1/8 and may even go to 1/16 from time to time depending on volume. If the spread gets too wide thats where YOU can make money by beating the MM price on either or both ends. With the changes that were made to NASDAQ 1 year ago, your MM is obligated to display your order if it betters the market. Say the market makers are at 4 1/2 bid 5 ask, put orders to buy 1000 shares @ 4 9/16 and sell 1000 @4 15/16. Immediately the spread narrows by 1/8 and if both orders go off you pocket $375.00 less commission. Do that once a month and you almost double your money in a year! The final advantage is if the stock gets over $5.00 ($1.00 in todays terms) its marginable. Since I am over 100% margined that means something to me.

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