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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: GVTucker who wrote (8684)	1/11/2000 2:34:00 PM
From: JRI	Read Replies (1) \| Respond to of 17183

Hey all...just saw a commercial for EMC on CNBC...a first (for me)..branding campaign with a man coming home late from work (because of some sort of storage problem at his company...I didnt see the entire ad).... Good or bad that EMC is branding in such a "hollywood" way? "Branding" involves recognition, and, certainly EMC is STILL not the most recognizable name (among investors, among the man on the Street), so I do see it as a positive.. GV- So, yesterday's late trade the knocked the stock down over 3 pts....was just a third-market trade (and not the fault of the Specialist)...if so, then whose fault is it? For, this sort of thing simply does NOT happen with any other big cap issue that I've ever seen (albeit, my experience is light compared to other's on the thread)...Something is wrong, somewhere...Sorry, if you have previously explained this, but would appreciate (another) explanation... The "liquidity" issue(s) you mentioned is (alone) worth EMC (attempting to) switch specialists...

To: GVTucker who wrote (8684)	1/11/2000 2:56:00 PM
From: Bob Frasca	Read Replies (1) \| Respond to of 17183

You said: "Price really has nothing to do with liquidity. The difference between owning 50,000 shares of a $100 stock or 100,000 shares of a $50 stock is zero." Financially speaking your example is true. As for liquidity, I must disagree. The very definition of liquidity is how easy it is to move the stock. Cash is the ultimate liquid asset. Real estate really isn't liquid because it's hard to move and it takes time to close the transaction. In terms of stock, it's harder to sell 10,000 shares of a $100 stock then it is to sell 10,000 shares of a $50 stock. The price is the ONLY thing that matters. This is the fundamental reason why a company declares a stock split. How many times have you read on these boards that someone is waiting for a stock split to buy in? The cost of the shares has made it difficult to move the shares, i.e. they are no longer liquid. This is also true in reverse. Many people won't touch a penny stock with a ten foot pole; consequently, it is no longer liquid. They do a 10 to 1 reverse split and suddenly the price seems more reasonable. Liquidity is as much a psychological issue as it is anything else.