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Strategies & Market Trends : JAPAN-Nikkei-Time to go back up? -- Ignore unavailable to you. Want to Upgrade?

To: Patentlawmeister who wrote (3503)	10/6/2003 7:56:52 PM
From: Crossy	Read Replies (1) \| Respond to of 3902

Cuda, re: JAPAN MARKET RULES & JEOL 6951.J exactly - In Japan there is a "maximum trading band" that a stock can rise or fall each day. The range is dependent on the last close (or last indication of day before). And it's usually 20-30%.. For example yesterday the indication for JEOL was 572 Yen - around 500 yen, the maximum range is 100 Yen. Closing INDICATION was thus at 672 Yen. At 700 yen it would be 200 yen and so forth.. of couse if the price movement is capped the market can't clear. That's what you are seeing now in JEOL. There are some trades but only limit orders falling into the trading range each day are matched against the orders on the other side.. The rest is carried over to the next day. This game goes on and on and on until the overhang is cleared. Sort of a "cooling off" rule to ensure orderly markets.. In this case the final trading will be quite spectacular. The initial overhang was 52m shares. But there are only 62m shares out and there is a major shareholder with 30-50% a stake (I believe it's NEC). This means the float has to turn around at least twice to satisfy all the buying interest, provided they are not discarded- but that doesn'T seem to be the case.. This is almost a "corner" situation. Shorters in such cases loose big. I expect JEOL to finally trade north of 1000 Yen, maybe 2000 Yen. Why ? Because last year's trading action took JEOL to 800 Yen on a single strong day of 7m shares changing hands. We are now an order of magnitude stronger than last year.. So the 2000 Yen are not out of reach.. I just talked to JEOL USA to inquire about the breakthru innovation. Classy management at work. Very helpful. They said the invention is looking great and of great use but miles away from core biz. Suggested that JEOL will license the invention out for royalty payments on units produced and possibly also an upfront fee.. Search for a capacitor maker with at least friendly ties to NEC I suggest.. rgrds CROSSY