OT "Stops"
Can't answer your questions. I was wrong on the INCY thread. It was AGPH and it was Yahoo which is copied below FYI. It is a beneficial read for less experienced investors.
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Top:Business and Finance:Stocks:Healthcare:Biotechnology and Drugs:AGPH (Agouron Pharmaceuticals) Help - Add to My Yahoo! - Sign Out
Explanation
by: HedgeFundBoss (46/M/New York) 1698 of 1965
Dear Holders of AGPH stock:
I have never posted on this tread before and I do not ever intend to again. However, today's movement in AGPH's stock may be puzzling to many here and I feel compelled to offer my thoughts.
First, let me introduce myself -- I am a professional trader and fund manager. I am very long on AGPH and have carefully followed its movements for several years. Over the past week, I have literally watched every transaction take place.
Based on my sources, there is a lot of good news coming for this stock over the next several weeks, including its quarterly earnings report. As AGPH rose very quickly over the last several weeks, many market makers had to short the stock. Now, they are trying to buy it back cheap before they are forced to cover in the 60's and 70's. They dropped their bids today so as to make the stock appear weak. As the price dropped, all of the stops along the way got taken out. The vast majority of these guys who got stopped out were holding small lots of 200-500 shares. You could see the stops getting taken out after it passed each whole number (e.g., 54, 53, etc.). By doing this, the market makers were able to cover their shorts and also go long on AGPH for the coming rise. If you check the time and sales today, you will see that every large transaction (over 5000 shares) was a buy, except for one. Moreover, after hours, someone in the know bought 30,000 shares at 50 59/64. That would not have happened if "bad news" was on the way.
The market maker tricks discussed above happens all the time. It is a simple game played by them, and they had me literally laughing as I saw each and every one of their little tricks being played out. You see, games like this are necessary to bring down a stock when they are short. Otherwise, they end up like they did on stocks like AMZN. My sources say that a certain market maker lost over $30 million covering their shorts as the stock zoomed ahead without any pauses.
So, all of you worried about AGPH, don't worry. Its just a game being played out. Expect AGPH to go up from here over the next several weeks.
James G.
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Posted: Jan 20 1999 4:24PM EST as a reply to: Msg 1693 by _HEBREW_
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