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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: Surfer who wrote (562)	8/26/2000 1:57:39 AM
From: Mama Bear	Read Replies (4) \| Respond to of 788

Surfer, the halt was probably requested by the company, and is appropriate when disseminating significant material news. It is done to give everyone an equal chance to make an informed trading decision. It was one reason why the original story was so suspect, because the stock should have been halted for that news. The gap up was caused because many sold short assuming the fraudulent PR was true and had to cover their trade. After the fraud was exposed there were no natural sellers, so the price had to rise to entice them. The only reason that EMLX was selling at 45 was because it would have been devastating news had it been true. It could not have opened where it did if that was not the level where buyers and sellers met. The MM's do not control the price on an NMS stock since the advent of ECN's and the Manning rules. Regards, Barb

To: Surfer who wrote (562)	8/26/2000 11:25:30 AM
From: Ron Kline	Read Replies (1) \| Respond to of 788

Barb states it correctly and there are many times when this can happen due to the change in market demand. For example let's say EMLX had a buyout offer for $150 dollars. The MM's will see where the buyers and sellers are equal and open it at a price where there are the most buyers and sellers, let's say $100. Nobody should be able to buy it low because it would be easy money. If I thought EMLX would have opened at the low I would put in for thousands of shares, why not, it's easy money right. Market just doesn't make it that easy and that's why most people lose on this kind of situation, at least for the day. I'm not saying MM's don't use tricks to profit, but I just don't think how they handled the stock of EMLX was anything different than how the market normally works. Ron