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Microcap & Penny Stocks : CYCOMM (CYII)-on aquisition trail -- Ignore unavailable to you. Want to Upgrade?

To: Brian Gross who wrote (833)	11/21/1997 9:00:00 AM
From: Bullseye	Read Replies (2) \| Respond to of 1800

> My question is why didn't it go down with 30,000 shares sold in the > last hour?? I don't know if anyone knows something about marketmaker screens ; It shows a list of all marketmakers (nasdaq) or listed exchanges (amex/nyse) with their prices and bid/asksize As Robert also indicated earlier, there was yesterday and today a large bidsize at $2. eg: exchange price bidsize price asksize ------- ----- ------- ------- ------- amex $2 253 2 3/16 18 pacific $2 53 2 1/4 24 chicago $2 24 2 1/4 10 otc $1 7/8 5 2 3/16 10 Very simply said : if somebody puts a sell order of (253+53+24) 33,000 shares, the bid will fall to $1 7/8 ; On the other hand : it only takes 1800 shares to move the ask up to 2 1/4 .. this would leave a spread of 1/4 and it's only a matter of little time before any of the exchanges lift their bid to narrow the spread. My reasoning : the chances for getting 1800 shares bought before 33,000 shares are sold are much greater. This could spark up the price. This WAS true : the price did bounce , except for what we saw yesterday at 3pm : that person was able to sell so much shares because the exchanges had a very large bidsize which (due to the selling) has been completely vanished. Since the screen now indicates a combined bidsize of 27 (2700 shares) untill 1 7/8 , any order in that range will automatically push the price to that level ; any larger order will cause another downtick untill support settles in. This situation can go anywhere. New support could be established through large bidsize at 1 3/4 or something like that. The exchanges however tend to move prices lower if more selling orders hit the floor. On the nasdaq such a situation tends to be more extreme than amex, but on the other hand any news like cycomm getting a new order or so pushes up the price on the nasdaq much higher, whereas on the amex the shareholder still gets punished. In conclusion : a combination of no liquidity and selling is capable of destroying the stockprice. It's up to the management to take necessary steps. Take care, Bullseye!