MicroStrategy Inc. (MSTR) Message Board

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Technology Stocks : MicroStrategy Inc. (MSTR)

MSTR 208.47

-7.2%

3:59 PM EST

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To: Bob Trocchi who wrote (267)	12/25/1998 7:35:00 PM
From: Rajiv	Read Replies (2) of 717

Bob, I have noticed that some stocks mysteriously go up just after the lock-up period on insider selling ends... My theory is ... Just after the lockup ends, the stock dips. This attracts some retail short interest. After 1-2 weeks the stock quickly ramps - forcing the weaker shorts to cover their positions. The analysts (who work for the underwriters) have a vested interest in making some positive comments around this time - as the insiders route their selling through these firms (that is commissions for their firms). I have noticed this in quite a few tech stocks which have IPOed in the last 1-2 years. These stocks have invariably gone down after some time but not during the period when some people expect it. MSTR probably falls in this category. With a third of the float being short (this % is very high), this stock can be very volatile. For a 1.1 Billion market cap tech stock, it is not very liquid - it often moves several points on just 2-300k volume. The size for the best bid/ask is often 100/200 shares - market orders will get very bad fills. If you want to manipulate a stock's movement, Dec 24 is ideal - lot of people are on vacation and you can make it go up by a ridiculous % on thin volume. As I avoid staying short something which is coming off a lockup period, I covered my short position sometime back. I should be back after a few weeks. Hope you have a happy and safe holiday season. Regards. Rajiv

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