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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Joe Antol who wrote (19439)	1/7/1998 5:06:00 PM
From: Spartex	Read Replies (1) \| Respond to of 42771

Joe: Yeah, I agree with your reply, TA and MM. What I have noticed lately is that buyers of Novell wait until volume is up (new sellers) so that they can build a position indiscreetly, in other words without moving the share price up. When it does go up too high for their strategy, they back off and wait for more sellers to come in. While I don't believe NOVL is under strong accumulation yet, it appears to be getting buyers that are looking at value rather than the rumors that usually pop the stock 1-2 points in a few days. And yes the market makers will spread the bid/ask from a fair 1/32, to as much as 1/8th. Of course we know that they get all the spread in their pockets. That's why I would use limit orders and let them come up to my sell-order, which I define and am happy with, rather than doing a market order unless a few 32's won't matter to you. Novell isn't the only company where MM's do this. It's broad, and whenever there isn't much action they open the spread for some lower sell orders. Volume obviously is their best friend, but ultimately share price move will be the shareholders. The 1/16th nasdaq rule is nice but it isn't always followed. Quad-K

To: Joe Antol who wrote (19439)	1/7/1998 5:12:00 PM
From: Spartex	Respond to of 42771

Joe: My take on why NOVL moves up on down market days, is that's when sellers will dump more NOVL at loses allowing the buyers their opportunity to buy in volume, and that may result is a bit of a rise if they continue to push the buy button. Conversely, on up market days, buyers may also be buying other stocks while sellers just throw in the towel on NOVL. OK, I know that is very superficial. It must have to do with the stars and planets or something cosmic and magnetic. Quad-K