Novell (NOVL) dirt cheap, good buy? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Novell (NOVL) dirt cheap, good buy?

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Paul Fiondella who wrote (23125)	7/20/1998 10:15:00 AM
From: Ben Antanaitis	Read Replies (1) of 42771

Paul, Anybody got another explanation of this or are we all clueless Well, here's a stab at it... As of Saturday night, ~544900 shares (~5449 call contracts) were auto exercised and had the shares transferred to today's new owners, who have to close out the purchase during today's business day. Assuming that the new owners are traders and not investors, first thing this morning they might have 'at the market' sell orders in to unload the actual shares that they had no intention of holding in the first place, gaining whatever profits they might have from the original purchase and any Monday morning 'pop' that might have occurred. If they don't have the cash to cover the stock purchase, they are pressed to complete the transaction early in the day, and will not wait to 'see what happens' during the day. This early selling pressure caused the down side price you are remarking on. If this hypothesis is true, then the price should rebound with any subsequent buying pressure. JMHO Ben A.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next