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Technology Stocks : Avant (AVNT) -- Ignore unavailable to you. Want to Upgrade?

To: Chung Yang who wrote (1253)	10/28/1997 5:07:00 PM
From: PMylnar	Respond to of 3441

AVNT. Mutual Fund ownership. I think the rule is that a "diversified" mutual fund can't have more than 10% of its assets in 1 stock. Fidelity, I believe, has an internal rule limiting firmwide ownership of a stock/company to 15% unless you get a special ok from compliance. Hedge funds and most pension funds have there own self-imposed limits.

To: Chung Yang who wrote (1253)	10/28/1997 5:11:00 PM
From: Cosmo Daisey	Read Replies (2) \| Respond to of 3441

Chung, >>>>>But I do remember that there is a rule which sez, no mutual fund is able to own either more than 2.5% or 10% of a company >>>>> There is a 5 percent reporting rule for funds or individuals who must file a 13D report with the sec when their holdings reach 5%. Any rules regarding total holdings wouldn't be effective because virtually all of the funds have offshore corps. set up to hold stock. Also, look at a 13F filing for FMR (Fidelity) on Edgar {go to Edgar site and enter "13f and fmr and 97" for a look see} and notice the total holdings in a stock may be as much 25 percent or more but it is spread amoung several funds, all under the Fidelity banner but considered separate. George Soros has offices here in the city but his company isn't a US company, its offshore and he escapes most of the SEC rules as such. He is allowed to buy Reg S stock that isn't available to US citizens by regulation from the SEC that is here to protect us. The funds have their own trading departments and can see the bid/ask and size of the market for any stock. Lets say they want to move AVNT up and there are five MM"s showing asks of 30, 30, 30 1/8, 30 1/4, and 30 1/2 all five by five meaning they guarantee a fill of 500 shares at the posted price. By placing orders at the ask with all five MM's at the same time they move the price up from 30 to 30 1/2 and buy 2500 shares. The increase brings the attention of several traders watching the ticker and they think a move is underway and jump in also. The price may move up another 1/4 to 30 3/4 at this point the fund becomes a seller any may be able to dump 15000 shares at the higher price. Thats how they move the market Chung, normal day at the office. Take a look at a time and sales sheet for AVNT and notice how many times during the day someone is taking out all the asks at exactly the same time to move the price. Take a look at T/S for a thin stock and see what you can do with 100 share orders, you can move a stock a point with 500 shares. Once you kick it off and attract some buyers you can become a seller. Is this legal? Absolutely not. Is it done? Yes, every day. Is anybody watching? Yeah. Is anybody doing anything about it? No In the case of AVNT today it may have taken 50,000 shares on the ask starting at 26 1/4 to move it up to create a rally to sell into. When the big supporter of the price is out, watch out. This stock is toast, burned toast. Its all about money and information Chung. Coz Any reference to Fidelity is for the purpose of explanation and education only and is not meant to be an analysis of their trading practices. Oh yeah, its probably a trademark also.

To: Chung Yang who wrote (1253)	10/28/1997 5:30:00 PM
From: Cosmo Daisey	Read Replies (2) \| Respond to of 3441

Chung, Take a look at the AVNT chart and I will walk you through the manipulation of the price. Starting on April 16, 1997 the large holders suddenly realize their core value is under water and they must bring the price up to get out. Starting at 9.75 the price moves up to $36 on 7/14/97. Looking at the patterns on the chart you will notice the price moving up and pulling back with an overall positive bias. The sell offs come following the upside activity. The stock is renewed and moves up again to be sold off again. The highs get higher and the lows get higher. In august and September they realize they can't move the price any higher even though they try during the second week of Sept. Now a negative bias emerges and the lows are getting lower and the recovering highs are getting lower. Todays trading took advantage of the overall market volatility to suck some new players into the game but it will take an act of congress to change the bias of this stock. Coz