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Strategies & Market Trends : January Effect 2001 -- Ignore unavailable to you. Want to Upgrade?

To: Dana Merrill who wrote (87)	12/23/2000 12:26:17 PM
From: RockyBalboa	Read Replies (1) \| Respond to of 289

Thanks, as the article pointed out there could be some "real" selling to cash in money to pay tax bills. Like any other "variable" condition, more stock must be sold if the price is lower (for example in mid April) to cash in a certain amount to pay taxes. ... At the same time this effect could be actually smaller than in the last years especially if comparably much of the capital gains of the last year(s) has been erased by the market drop in 2000 (in connection to the widespread booking of tax losses before yearend). I was simply looking for an explanation of the "cataclysmic" selling waves in single stocks towards the end of a long slide...resulting in prices which have nothing to do with book value, cash or other fundamentals. Some of the affected companies came to the market in either 1999 or 2000 with clearly some forward tax duties on option related stock holders...and I have watched Market makers being in no hurry to show some reasonable bids during the selling periods...NENG was really a muster of attrition... Regarding TERN: I have second thoughts about this stock. It tries to tell me that a block is overhanging (as opposed to CMGI, ISLD and some others), maybe it gets really bad or it simply takes some time until the block trades through (which could be at $2, $3 or $4)...I watch out for a selling climax here. It has a big float so it appears that the volume we have seen as of now has not been the peak.