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Technology Stocks : RadiSys Corp -- Ignore unavailable to you. Want to Upgrade?

To: Ken Crooks who wrote (1056)	12/12/1997 4:01:00 PM
From: dylan murphy	Respond to of 1472

Basically I'v always thought that the price of a stock was a function of supply and demand. If the mm drops the price too far and buyers feel it's too low, they step in and bid it back up. As far as the spread goes, it's bad if you need to sell right now. If I want to buy (or sell) I always place a limit order on any over the counter stock. Volume at 2:00 was 28000. It was an hour before another trade even took place. Not much interest here pro or con today. But considering what happened today that's not all bad.

To: Ken Crooks who wrote (1056)	12/12/1997 5:07:00 PM
From: D.J.Smyth	Read Replies (2) \| Respond to of 1472

i'd participate Burt, but note that trades between mm's may not show up on the tick line but they do affect price. so, one mm selling to another at "any price" will affect the immediate price of RSYS. if one mm is willing to buy from another, say at $37 3/4 for 5K shares a mm is holding, then the next actual joe person selling into the market will generally get the same price. as the price dips, the mm who bought the shares from the first mm can use the shares to drive the price lower as he/she is holding a larger short position in the stock. so the second mm (who orginally bought the shares for $37 3/4 from the first yahoo mm) sells into the market creating further weakness in the stock price. if they create enough sells, then the mm covers his position at the lower price, which, in theory, helps lift the price back up, but in reality generally causes further weakness. if no actual joe person takes the bait and sells into the weakness, and buying instead occurs, then the second mm who is holding the long 5K position will sell into the strength and may also cover his short position which may result in a net loss for this mm. so, in the sec's view, it was a risk the mm was willing to take in theory. in reality, an mm who is holding a small long position will sell to another mm with a larger short position to "assist" the second mm in his profit motives. the next time around it's the other mm's turn, and so forth. how do you correct this behavior? i certainly don't know. rsys needs to issue news on their new design wins.