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.

Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (12720)	7/1/2001 1:36:51 PM
From: TimbaBear	Respond to of 78566

NITE is a market maker's market maker. If trading activity in BB stocks is (relative to recent past) heavier than normal, the income generated from those trades will appear to be higher proportionately. However, if trading volume in NASDAQ issues picks up, as I expect it will throughout the remainder of the year, then the income generated by those trades will show the most improvement. "....now that the speculative fervor has abated...." I'm not sure that the speculative fervor has abated as much as it might appear from the trading volumes. I believe that there is a lot of speculation occurring on the short side. The desire to gamble is as strong in this country today as ever it was, I don't see a moratorium on new casinos. It won't be too long before we discover whether my feeling is right or not. I expect by the end of the year either the stories will include an increase in trading volume or the story will be that the investors fail to return to the market. Right now, a lot of investors/speculators have thrown in the towel and gone with more traditional full-service brokers and that has had a dampening effect on volume and on on-line trading. But as the market recovers, the same factors that drove these same investors to enter their own trades (the cost savings) will likely serve to drive these folks back to doing their own trades. Maybe not as exuberantly as before, but more than they are now. And NITE and the other market makers and ECNs will all benefit. Yes, NITE is selling higher than its BV, and yes, it is selling at higher than its NetNet value. I didn't recommend it as a NetNet play, (although at these levels in this market, it might be considered a value play of sorts) I was responding to someone else's discussion of it. In my response, I called NITE a "trading play" and that "bump" you refer to, is what I usually play for a 30-40% short term gain. Timba