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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: John Koligman who wrote (160749)	9/15/2000 5:34:19 PM
From: D.J.Smyth	Read Replies (3) \| Respond to of 176388

that's the missing link that Kumar should have added to his report: paraphrased, "...I expect Dell's price to wander south due to continued tax loss selling created, in part, to questionable reports like mine...er, that is, questionable sales...remember, the P3 sucks" can not one invent a myriad of reasons for Dell's continued price weakness? here's another scenario. one family of mutual funds tells another family "you've got Dell, we've got T. i'll trade you my Dell for your T at prices ranging from $35 to $36 for Dell and $29 to $31 for your T". they both shake hands, exchange spit. the one family then exchanges their Dell shares to the other and vice versa on the T. the one giving the shares takes a loss on the Dell, and the one giving the T takes a loss on the T. they then place orders with the NYSE for the T for, say, 30/40 million shares bw $29 and $30 while T's price is currently trading at $33. the other does the same for the 25/30 million Dell shares bw $35 and $36 while the price is trading bw $39 and $44. these transactions, although listed for the "third market", actually take place on the secondary market in order to realize the full benefit. they then hedge their "new positions" in order to help "guarantee" a price either through overseas dealers or the CBOE. the market makers pull in orders bw 25/30 million at $35/$36 close to options day (exchange, whatever). highly margined stocks tend to drop as the one manager begins his exchange from $43 on down. the "fund families" involved in these transactions then disburse the 25/30 million Dell shares through their fund portfolios, and likewise the T So, the first family fund gets to take (a) an increased loss on the Dell, and (b) increased gain on the puts bought or calls sold or both. regardless, they make money. that kind of tax loss selling? all the while, internet folks keep coming up with more reasons while Dell is down. THEN, suddenly, out of the blue, from nowhere, all this buying comes rushing in, and most traders appear baffled by it all, including me. all the while, congress holds these silly meetings about corruption on the Street with the "corruptors" (and corruptees) doing all the testifying. it gives the American public the "appearance" or propriety (kind of like Al Gore's speeches)