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Non-Tech : Canadian vs. US Banks--Better PE and rising C$ -- Ignore unavailable to you. Want to Upgrade?

To: samson who wrote (190)	1/30/1998 7:22:00 AM
From: Bill Jackson	Respond to of 230

samson, The psyche of the market is a strange herd type. If you have secret knowledge of a buyout that no-one else has you can make a huge profit. Like huge bump in the road that you have been over a dozen times, and you brace yourself for the effect, but a new traveler hits the roof of the car. This "months ahead" is just that effect as people make straddles and others things to lessen the anticipated bump. All of thse market methods of avoiding bumps use up some shares as people take defensive positions of various kinds to protect themselves if they gave you an option of some sort. So all these hedges give a smoothing effect, and as you head for the down bump, the price falls a little due to the accumulated effect of all the market defense mechanisms. That is why takeovers etc are guarded and secret, and if it leaks and insiders/printers etc make profits the SEC/OSC takes action and unwinds the profits. Bill

To: samson who wrote (190)	1/30/1998 8:32:00 AM
From: robnhood	Read Replies (1) \| Respond to of 230

Samson, <why should'nt the bank stocks stay up> , Before the announcement they looked like Sh#$t, I'm not sure why that was , but it looked like they thought the good times for bank stocks were coming to a close. Understandable to a degree, they had a great run. Now in my mind I ask, What has fundamentally changed? The dollar is now weaker, with no seemingly good explanations, The shorts are all covered

To: samson who wrote (190)	1/30/1998 5:46:00 PM
From: robnhood	Read Replies (1) \| Respond to of 230

samson, Had to run this morning when I looked at the clock, anyway, I'll see if I can carry on. There was an orgiastic binge of buying in the banks last week, I would assume that almost everyone who wanted in, got in. This is what a blowoff top looks like if you ask me. The prime Minister has already stated that he does not like the idea of the merger. Personally I don't think much of it either. I can't believe huge pension funds are going to like it too much , with one broker controlling 32% of the market. There are months to wait for any answer. Quite frankly I can't think of one reason why they should'nt go down. BWDIK russell