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Technology Stocks : Cisco Systems, Inc. (CSCO) -- Ignore unavailable to you. Want to Upgrade?

To: Eski who wrote (41630)	10/28/2000 2:20:50 PM
From: t2	Respond to of 77400

Eski, What I have noticed in the past when I did some daytrading is that you cannot hold stocks like Cisco at a certain price. I believe that last August(1999) certain rules kicked in on Nasdaq stocks that prevented a market maker such as GSCO from trying to keep a stock at a certain price by refreshing their small buy orders but not moving from a certain price. This was really a problem with smaller cap stocks that can be manipulated. I don't think it made much difference on stocks like CSCO. I remember how JDSU was held at a certain price just before options expiration last year but this was when it was not such a big company. If GSCO is buying huge volumes at 50, then my intrepration is that there is huge demand for this stock at around that price. There is just too much risk for GS to keep buying stock for themselves. Remember they would be stuck with a large number of Cisco shares if the stock was to tank. I don't think they are really doing that as the risk to the firm would be too high--basically it is not worth. My feeling is that many institutions are buying up the stock seeing it as a bargain around $50. They may just be pushing their orders through INCA, GSCO, MASH etc. I don't know who the "axe" is for the stock but I suspect GSCO is probably one of them. If anyone has "instinet book", then they can probably see some orders routed through INCA by market markers. It may not make any difference which MMs are doing this as it would be for clients (intitutional) and probably big ones. Remember that Microsoft and Intel started moving up recently. Many may be sensing that Cisco is about to ramp up shortly and they want to get in. There does not appear to be any sense of Csco missing their numbers. Chambers has been dropping hints in Oct and Sept of how good things are. He does not answer questions directly but you can notice it when he talks about demand going forward. There is a premium to be paid for good visibility in future earnings and many institutions are probably seeing it that way too. The way I see Friday's action is that there is just so much demand for this stock at that price even with this rumor going on.