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Gold/Mining/Energy : JAB International (JABI) -- Ignore unavailable to you. Want to Upgrade?

To: Linda Kaplan who wrote (2650)	1/15/1998 5:52:00 PM
From: Oscar	Read Replies (2) \| Respond to of 4571

Today's intra-day price erosion was 2-3 margin selloffs, IMHO, unrelated to the stock itself. Large percentage of the day's volume occurred in 2-3 20-30 minute high-volume selling sprees, at the bid, which created several downticks each. Otherwise the story throughout the day was one of gradual upward pressure on the price, and recovery. Nothing else adequately explains the intra-day movement of the stock: Otherwise, if shareholders had been wanting to sell off that kind of volume themselves, they would have put in limit sell orders and been able to get 13/16 to 27/32 through most of the day with ease. But when a broker does a margin selloff, it's all at once. The biggest volume spike occurred about 2 EST, when the stock is usually sleeping. Today is a very predictable day for margin sell-offs, since last Friday was a major bad day at the end of a major bad week. Margin calls went out end of Friday, with three days to cover lest accounts be sold off Thursday. That's today. It doesn't matter that BCMD is not marginable with most brokers, since all that is required is that an investor use the margin from other stocks to buy BCMD for BCMD to be on the hot seat. Twenty minutes after the last selling spree, both bid and ask were back up 1/16, with no external reason, e.g., news, new rumors, etc. That upward movement continued to the close, when the bid/ask were the same as at yesterday's close and today's open. If the selling sprees were a sign of market panic about this stock, they wouldn't have turned upward again with such ease. they would have gathered momentum from stop loss sell orders, created more panic, and headed for some of those figures which people have mentioned: 9/16 to 5/8. Instead, people (or perhaps market makers, as opposed to people), seemed to want the stock even as the price turned and headed north each time. It's just my theory, but it is clear to me that this has happened 4-5 times since October 15. None of this is intended to represent Good News of any kind, or to assuage any fears anyone might have about the company. But I think that it does tend to undercut the idea that the stock is tanking just now. We'll see. Oscar