Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Daytrading Canadian Stocks in Realtime $3.00 or less -- Ignore unavailable to you. Want to Upgrade?

To: 1st.mate who wrote (2683)	1/29/2001 8:08:41 PM
From: marcos	Read Replies (1) \| Respond to of 4065

Quite often they get sold down for the specific reason of doing pre-arranged crosses ... here's one scenario - a stock is getting sold down anyway because a large holder or a group is getting out, parties interested find out who they are and negotiate block trades for the whole package, usually under the market but not so far that selling it down is difficult .... the bid and ask for the block don't get shown on the depth as they are put in fill or kill, and as simultaneously as possible ... then the buyers are motivated to buy the stock back up and are able to do so through thinner offers, and at the same time others see the volume and get interested ... that's about the most normal scenario imho [edit] - it's not always down to do the blocks - check out the log for ivn.to in december, they moved it up and crossed lots. Essam Hamza years ago had a thread on block trades, the phenomenon was discussed in general in early posts as i recall, they were worth reading ... can't find that thread, but here is his later one - Subject 27976 Fred C, those jcps [junior capital pools] almost always start off their listing with a block of millions at .20 ... they almost always trade up after, i've never seen one that didn't .... but good luck trying to get the .20s, you have to be connected.

To: 1st.mate who wrote (2683)	1/29/2001 8:23:59 PM
From: russet	Read Replies (2) \| Respond to of 4065

"Why do you see large crosses before a run up on a stock?? What is the function of same and utility?" If someone with a large quantity of stock wants to get out, they will sell their stock into any rally, as well as hitting the bid continuously which artificially depresses the price of the stock below the level which the rest of the market would price it. Brokerages can be involved to find buyers for the overhang, but many times the buyers will want the stock priced at a discount so selling will commence until the buyer(s) price is met, then the cross occurs. Once the overhang is gone, the market finds a new equilibrium,...many times at a higher price. A good example of this, is end of year tax loss selling of a stock. You showed a good understanding of this when you posted your long list of stocks in December that you felt were artificially depressed. Now many of them have rebounded once the overhang of tax loss selling was over. Another explanation is also possible. When a private placement or other share price offering is done, those shares generally are released to the market at one time. Those shares usually show up on the ticker as a large cross on a day specified by a newsrelease. The brokerage then releases the money to the company which the market usually takes as a positive because the company gets a cash injection to allow it to proceed with its business plan,...so the stock price goes up. There are other types of transactions that result in a large cross, and are generally viewed as positive by the market. The more important question becomes,...how long will the run up continue? Knowing why the cross occurred, gives you a good idea,...phone the broker involved and find out the reason for the cross, most will give you a general idea.