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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: RANDY DAVIS who wrote (4082)	2/28/1998 9:28:00 AM
From: Steven Bowen	Read Replies (1) \| Respond to of 12468

<Is it possible that MMs are pushing up share value as proceeds from LMDS auction increase. Any thoughts?> Market Makers can't really push up share value. Just like anything else, it takes supply vs demand. Just think of the MM as any middleman, such as a baseball card dealer (since I've used that one here before). They make their money by buying and selling. If they're buying a Nolan Ryan rookie card for $1000, and selling it for $1500, what real power do they have to push up the price? They can start paying $1250 for the card, but that would kind of be crazy as long as there are plenty available at $1000 and no one wants to buy from you at a higher price. Or he could try selling for $1750, but nobody will buy from him if they don't want to pay the higher price and others keep selling at $1500. In short, it ultimately takes demand to move a price up. Somebody has to want it and be willing to pay higher and higher prices. And people who own it have to start wanting higher and higher prices before they sell it. MM's won't put themselves in this position. They just keep buying and selling at whatever price the supply and demand in the market place dictates. Unless they themselves want to become part of the demand, which I don't think they hardly ever do, and which would get pretty risky for them. After all, if you could sell 3Million shares a day and make $0.25 per share, on just one stock, why take the risk of becoming an investor. That's not really their mission in life. So, sorry for the surmon, but the answer to your question is; investors and mutual funds may see the LMDS proceeds as reason to value WinStar more highly and therefore pay higher prices to obtain WinStar. But MM's don't push up share price. The good news is, this means to go up like WinStar has, has to mean there is incredible demand for the shares. This means more and more people are waking up to the story all of us here has known for years. Which means all of us here are just too darn smart, and shouldn't have realized this story until about April of last year :-) Would have saved a lot of pain.