Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Tell it to John Reed Stark of the SEC -- Ignore unavailable to you. Want to Upgrade?

To: Don Pueblo who wrote (1)	3/5/2000 9:30:00 PM
From: Janice Shell	Read Replies (1) \| Respond to of 17

Chickie! Hello!! Bawk!!

To: Don Pueblo who wrote (1)	3/6/2000 12:15:00 PM
From: Wayners	Read Replies (1) \| Respond to of 17

The institutions stopped liking COMS a few years ago. COMS has stumbled so many times that I think their management reputation rubs off on other companies. Certainly doesn't help PALM. The ONLY entities with shares of PALM on the IPO date were institututions so its obvious that the institutions all bailed at once. The buyers? The general public seduced by the media hype job. $150 to $165 price? Market makers taking advantage of huge number of market orders for PALM. They will open it as high as they can get away with...however I know that on the NYSE when they gap a stock up they are under pressure to provide a fair market. If they gap something too low for the demand, the specialist loses money. If they gap it too high the specialist makes a lot of money if it retreats fast and hard at the open--but people will then also complain about where the specialist opened the stock. The specialists don't like to be accused of manipulation like that. With market makers, I don't know if they are under similar pressures or not..or if they have free reign to open it wherever they want regardless of underlying demand. With regard to shorting an IPO in the first 3 days---You can only short naked. There are no legitimate shares to borrow because until the IPO transaction clears, all the legitimate shares still reside with the underwriters for 3 days. Shorting naked means you cannot hold the shorts overnite or you will get in big trouble because whoever you sold the shares naked too--needs those shares in T+3 days. If you don't supply them by covering short by the end of the day, you violate a few nasdaq rules and you will likely get your account closed. Also, I don't know of any brokers that allow naked shorting, but they might exist.