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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: TideGlider who wrote (8386)	11/5/1997 7:37:00 PM
From: Apple12	Read Replies (1) \| Respond to of 25960

To Board off Subject: A bit long but a great analogy of what we are going thru with Cymer! Okay, so what's the big gripe everyone has with the Nasdaq? Well, here's the difference, imagine you came to the auction... it looks like the same auction, but you can't see anyone's face.. they are all making deals on Cell Phones. Hmmm, you think, this is odd... Not only are they all on cell phones making deals between the people in the room and "someone else that they are calling Vinni, but suddenly you notice the security guard that was at the NYSE auction is missing. Hmmm, you think.. this is really strange! But it looks like an auction and everyone says it's a good place to sell my book, so you go inside. Now something is really strange, people want to sell you their books and buy books from you, but they won't tell you how many they have to sell or how many are wanting to be bought. Boy, that's bizarre, who am I supposed to tell what the supply and demand is here??? But, you friend told you this was the place to come to sell your book, so you go inside and sit down. You watch the auction for a minute and you can see that books are selling at $20 each and being bought for $19. You've got some books to sell and you think to yourself, "Gee that's a BIG price difference..." Just then your wife pages you and says dinner is ready, so you figure, "Heck, I'll just give someone a good deal and sell my book right away for $19 3/4... after all, there's a big group selling them over there for $20 each, so certainly if I sold my one copy for $19 3/4 I should get someone to buy it right away"... So you stand up in the crowd and yell "Right, here! I'll sell this book for $19 3/4!!!" You wait for the crowd to rush over to you and buy the book but all the guys on the cell phones just look over at you and grin and go back to buying books at $20. "What the hell?" I'm offering my book at a full quarter less? I would think the guy on the other end of that phone buying the book at $20 a copy would sure like to know about my book over here for $19.75... so you yell louder "RIGHT HERE, I'VE GOT A BOOK FOR SALE AT LESS THAN WHAT YOU ARE PAYING ON THE PHONE"... Just then two thugs come over, tackle you and drag you outside. Then they proceed to be the hell out of you behind the auction house. "Listen pal, you don't come to our auction and sell your books at $19 3/4 If you want to sell around here, you sell to ME at $19 and I'LL SELL THEM for $20 in that room - UNDERSTAND? I'M THE MARKET MAKER and that's just the way it is around here"... as he pulls out a 9mm Glock and offers you 19 bucks for your stock you start to get the picture... you're at the NASDAQ auction, not the NYSE. If you don't think this is true, just line up 10 Nasdaq stocks and 10 NYSE and watch them in real time. You'll notice the bid/ask sizes on the NYSE reflect buyers and sellers coming into the market, while the Nasdaq stocks all pretty much stay at a size of 10. Not only that, but you see 100,000 shares go by at what you "think" is the bid price, only to see the stock fall a buck. Hmmm. We aren't saying don't trade Nasdaq stocks.. just saying it's a different market. After a while you may get tired of having someone's hand in your pocket all day while you trade! --[end]-- We still trade the Nasdaq, but just be aware of what you are going into...