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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Greg Jung who wrote (14188)	6/30/1999 12:43:00 PM
From: Bruce L	Respond to of 42804

<I think if a large institution wants to buy in blocks, they will be accommodated by the MMs> I'm not necessarily disagreeing with you (and I agree with everything else you said) but I don't quite understand this particular point. Yes, I know that MMs are supposed to provide liquidity to the market, but they also want to make a trading profit. Take yesterday for example: the initial bid-ask was something like 12 9/16-5/8. Why would any MM in his/her right mind, if approached by an institution, accept a block order for 25,000 shares at 12 5/8 if that MM only had, say, 8000 shares in his inventory? I don't think he would - not unless he jacked the price well over the ask. If he did accept such an order at the ask, wouldn't he look pretty foolish to his employer a few minutes later when the price hits 13 9/16? Perplexed.