To: Captain Jack who wrote (873 ) 7/31/1999 8:09:00 AM From: dealmakr Read Replies (2) | Respond to
I am glad to see the spread starting to narrow this week and even though IMHO I feel it should be coming down more, its quite an improvement. As with any stock one of the critical factors in helping the market to determine valuation is liquidity. With the spread at an unreasonable level it is too risky IMHO for any trader/investor to entertain any thought of putting on a position. An unreasonable spread was what was put out when the stock first commenced trading, who would want to take the risk of buying and not being able to sell without taking a 40% haircut, thats illiquidity. I would hope to see additional MM's come into the picture over the next month or so and bring more price competition into the trading. Its my opinion that for volume to happen, liquidity must be present. A spread of 1/4 point or so should be a target area to look for I would hope. A liquid trading market is usually a good way for the market to determine the current valuation of a stocks price, both buyers and sellers won't have the overhang of an unreasonable exit or entry point to make their decisions based on their own DD and analysis. While its been a long road since this all began with the dividend issued to BANY shareholders and a lot of starts and stops along the way, the facts are that the stock is trading (to those who said it wouldn't happen), the company is in compliance with all the SEC requirements including the new ones (meaning it won't be delisted from the OTCBB like so many others that are about to), liquidity has improved over the last 2 weeks from a ridiculous spread of 10 to a close of a spread of 3/4 (hopefully to close up more soon). The listing last week with the S&P was a good fundamental move to bring the profile about the company into a new light, no hype there just a listing of pertinent company information into a recognized database.
