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To: Muthusamy SELVARAJU who wrote (2219)	7/11/1999 1:33:00 PM
From: oilbabe	Read Replies (1) \| Respond to of 10027

Concerning the report from Merrill, I doubt that had much to do with the move, since the report came out of Thursday, and NITE traded over $63. on Friday before the drop. I think a lot of stops were hit on Friday, causing more selling, causing more stops causing more panic selling. Not unusual in volatile stocks. We shall see in the next few days. I agree that NITE needs to recover from this. Art Hogan, guest host on CNBC tomorrow has been a proponent of NITE in the past, and we sahll see what if anything he has to say tomorrow am.

To: Muthusamy SELVARAJU who wrote (2219)	7/11/1999 2:47:00 PM
From: Joseph Silent	Read Replies (2) \| Respond to of 10027

Muthusamy (or anyone else)..... Well, we're expecting some 60 mil shares to be potentially loose this week. That's not a small number. Is it possible that broker-dealers have been shorting the hell out of this beast, with some % of their shares? It would be low risk for them, given adequate holdings. This may explain the selling we've been seeing recently. Opinions? And Muthusamy, if you have an e-mail address, I'd like to talk to you off-line. Thanks, Joseph

To: Muthusamy SELVARAJU who wrote (2219)	7/11/1999 7:35:00 PM
From: Bob Kim	Read Replies (1) \| Respond to of 10027

I would disagree with you about the decidedly bearish tone of the ML report on NITE. ML still has one of the highest 2Q estimates on the street. I think the report just reminds everyone about the lockups expiring and how new supply could pressure the stock price. Futhermore, given the recent run-up in the stock combined with higher interest rate assumptions, a DCF based valuation is going to look less attractive than a few weeks ago. The analyst does mention that there is upside based on relative valuations. Obviously, if the stock were to run up a lot more, the analyst might have to deal with the question of a downgrade on a valuation basis.