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Strategies & Market Trends : A Simple List of General Do's & Dont's of Trading: -- Ignore unavailable to you. Want to Upgrade?

To: Arthur Tang who wrote (699)	3/30/2000 10:42:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 769

How breaking news effects Wall street? Goldman Sachs in China, underwrites a chinese oil company(China national oil news release) for $3.1 billion. 1/3 of the money came from HongKong already spoken for by four real estate firms. 1/3 from America, Abby Cohen (Goldman Sachs news release) advised their clients to drop 70% equity to 65% to take profit. Nasdaq is on a downward spiral from Goldman Sachs clients taking profit, since. How many days the market will go down, we shall see. 1/3 from Europe is anchored by British Petroleum investment, but they will buy on the day of issue for only 20% rather than the whole 35%. They will pay $1 billion. This means the stock when issued will go to 33% premium. How high will Goldman Sachs clients who liquidated their tech stock in America, pay for the oil stock, will be shown on issue day how many shares traded and how high the price of the stock will be. They are selling Nasdaq stocks cheap to buy high flyer oil IPO stock. It is like an open book, if you want to study underwriting and the process they go through. How they made sure the price will go up. Breaking news tells you what to expect on IPOs. Question is whether IPO for modernizing old oil fields is worth liquidating high tech high flyer stocks? However, if you are a big client (about $400 million account) of Goldman Sachs, you will be guaranteed a 35-40% profit each year by being invested in these IPOs. Warren Buffett hasn't followed up his share of guaranteed income lately.