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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Sarmad Y. Hermiz who wrote (3827)	7/3/2002 12:34:21 PM
From: JSLyons	Read Replies (3) \| Respond to of 95530

Hello Sarmad, You've posed some good questions, with few obvious answers. But here are a few thoughts, all the same, on some likely sellers: mutual funds seeking redemption capital; pension funds and 401-k funds covering rising demands for cash or bonds; followers of "sector rotation"; tech investors on margin...some insiders... etc. There are plenty of usual suspects. I think it is worth pointing out that much of "public" Wall Street is virtually geared toward buying high and selling low. Almost no one complained about tech "valuations" in 1999 and 2000. Likewise, suddenly these stocks are getting hit with downgrades. I see some genius just downgraded GNSS. It's already lost some 85 percent of its value in the last 6-8 months. So why now? I've begun filling my AIM buy orders over the last few days. I am particularly pleased when I can either lower my average cost of a holding significantly (KLIC), or get in below my Sept 01 low (TRKN). RtS and I are both watching and waiting for ASYT but it won't fall fast enough. I'll be a net seller again when these things finally start to move (and they will move one day), selling partial positions on the way up. Best rgds, Jonathan

To: Sarmad Y. Hermiz who wrote (3827)	7/3/2002 12:37:37 PM
From: robert b furman	Read Replies (1) \| Respond to of 95530

Hi Sarmad, I believe the specialist is the source of your shares being sold.They can create shares by selling short - they also cover at the end of the day. The velocity of shares is greatly skewed by this short selling /churning. When the shorting stops is when accumulation occurs to an extent that float is reduced and the specialist no longer feels comfortabl;e risking creating the short. At that time he'll be much happier holding his appreciating inventory. JT's thread shows a huge accumulation of stock by the exchange members.It doesn't happen overnight but it has been going on a long time already. JMHO Bob