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Strategies & Market Trends : Cents and Sensibility - Kimberly and Friends' Consortium -- Ignore unavailable to you. Want to Upgrade?

To: Jim B who wrote (38395)	12/4/1999 10:28:00 AM
From: Jeanne_N	Respond to of 108040

Post on BITS from RB board: THIS IS WHAT HAPPENED TODAY-->> There is a serious rumor that ALLR is buying BITS. On the Bloomberg website it was even mentioned that ALLR will be announcing an big acquisition next week. (I will try to get the link later). But more than one has confirmed it will be BITS. You don't get 6 mill volume on the rumor of one person. The daytraders came in and raped the stock and with such a tiny float of 3.6 mill shares, it was poised for a pop. Well, the MMs have what is called 'level 3'. They can see the sell stop orders sitting there. If you were watching, the momentum was strong all morning and the MMs had to fill market orders obviously with shares they didn't have. They need to cover those positions they are short and the best way to do it is to wait for the momentum to die down and then walk down the price to catch those sell stops and cover. You have a strong base here at $3.5. But looking at the fundamentals, BITS is on track to make $8.8 million this year in rev. That puts them at a PE of 6. That is nothing for a software company - especially a profitable one. I think you will see $6+ next week sometime.