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Strategies & Market Trends : Floorless Preferred Stock/Debenture -- Ignore unavailable to you. Want to Upgrade?

To: Timelord who wrote (539)	6/28/1999 12:43:00 PM
From: Nanchate	Respond to of 1438

Yes, Alex sorry... I read that after I had already posted to your list. Thanks for making the clarification. Nanchate

To: Timelord who wrote (539)	6/28/1999 2:24:00 PM
From: EyeDrMike	Respond to of 1438

<< While these companies appear to have survived a floorless issue for various reasons, and in a few rare cases, have recovered, the effect on their stock price is no less dramatic:>> I'm going to chime in here as well, and suggest that the floorless had absolutely nothing to do with the weakness exhibited by ASTN: WASHINGTON, DC, Jun. 15, 1999 (States via COMTEX) -- The Dover Group, shareholder, Ashton Technology Group in Philadelphia, Pa., reported on May 28, 1999, the proposed sale of 240,000 warrants on May 20, 1999, for $1,676,800 through MH Meyerson. Reportedly, the CEO of ASTN runs his shares through Dover, and these are his warrants. He owns/owned 2.2 million shares. He sold these shares but has almost 2 million remaining. the CEO has worked without a salary for the last 3 years. Now for the reason this sell is so significant. 240,000 shares is about 12% of the outstanding number of warrants. They started selling on may 20th. the stock started to nosedive shortly thereafter, MH Myerson has a "dirty" reputation. It is entirely possible word got out that a large sell order on the warrants was about to take place, and a shorting of the common took place. If you look at the chart, the stock price did not start to decline until a few days after May 20th. Just enough time to establish short positions, In addition, every time this stock price got to a technical support, it got hammered with 5000 and 10000 sells on the bid, breaking the supports. I call this "selling with prejudice". Seems someone was in the know, the good news is that now that the Form 144 has been reported, the selling has in all likelihood been completed. In fact , we turned up as of yesterday. Seems to me its no coincidence.