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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST
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To: Sam Nizam who wrote (214)4/24/1998 11:13:00 PM
From: WBendus  Read Replies (1) of 6531
 
I tend to think that most of the selling pressure is coming from those "foolish" people who put market-at-open orders on IPO date. Not that are selling because they want to, but because the opening price that they got is causing margin calls since the stock is not marginable. People probably figured on getting around $30 a share or so and maybe had that kind of cash available in their margin accounts and when the took the stock at $62, it caused some problems.

I think that it is a problem for the NASDAQ not to provide opening indications for investors on stocks that are delayed in opening. I thought it was kind of funny that I put a limit order of $26 in on IPO day but boy was I glad I used a limit. The only time to use market orders in when you can see roughly what the market is going to give you.

I do not know how long it takes before a stock is deemed marginable after an IPO, but I think that once this stock is marginable, new support will come in.

Wayde.
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