Avtel Communication (AVCO) Message Board

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Technology Stocks : Avtel Communication (AVCO)

AVCO 2.120

+2.4%

Oct 31 3:59 PM EST

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To: justaninvestor who wrote (324)	11/16/1998 11:57:00 AM
From: Gerald Walls	of 461

The interesting thing for me is that it had already more than quadrupled by the time CNBC carried the story. Why? What in that PR would cause a buying frenzy? A small company with a small float suddenly generates a surge of buying interest. Since the float (less than 2M shares) and average shares traded daily (about 5.8K, and I think this has already been adjusted upwards due to the Thursday activity) are small it takes almost no buying interest to drive the price skyward. One new buyer who wants 5,000 shares would account for nearly all the average volume himself. The stock starts up and the momentum traders jump on, not caring why the stock's running up, just that it is. Great while it lasts but, as someone else here put it, make sure you have a chair when the music stops.

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