Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Quarterdeck: Making a Striking Comeback! -- Ignore unavailable to you. Want to Upgrade?

To: Jesse Livermore who wrote (2007)	12/15/1997 2:39:00 PM
From: Jesse Livermore	Respond to of 3307

Nice volume today Fred. I don't know who is selling at these levels but someone is, at least, buying. I am to the point where I am seriously getting crazy. I've saved up all these credit cards for emergency loans. Maybe I'll buy 50,000 shares on credit. Nah, I am not that much of a QDEKAHOLIC. It looks like the cartel takes this round. To my Yahoo fans...no need for clothes.

To: Jesse Livermore who wrote (2007)	12/16/1997 9:00:00 AM
From: E. Taylor	Read Replies (1) \| Respond to of 3307

The theory about a "cartel" driving down the stock price doesn't hold water. The biggest reason is that the convertible issue that is due in March contains an explicit provision against shorting QDEK stock. The "cartel" has no incentive to drive down the stock price if the option of shorting is removed (as it is in this case). Reducing the price just means that they ultimately have more shares to move to get their money out in the end. At volumes between 100k and 1M a day, they would have a hard time getting enough buyers without driving the stock down further. If the stock price is $1.50, they have to sell twice as many shares to recover their money as at a price of $3. Coupled with the share dilution upon conversion, trying to drive the price lower only makes it harder for them to get their money out of the company. It's pretty clear that they don't have much incentive to lower the price. While there is a price cap of $5 on the convertible issue, it's in their best interests to keep the stock price as close to $5 as possible. Since new shares have to be issued to satisfy the conversion, the price will only drop from $5, all things being equal. To avoid the problem above, they would want to keep the price high so they can liquidate much easier/faster. The reason for the stock price decline is probably better explained by end of year selling to offset gains taken elsewhere. Couple that with sympathetic declines triggered by Cyber's recent troubles and a generally depressed tech prices, and it probably accounts for most of the drop in QDEK from 3's to 1's.