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.

Biotech / Medical : Ergobilt (ERGB) - Ergonomic Chairs -- Ignore unavailable to you. Want to Upgrade?

To: Anaxagoras who wrote (781)	3/24/1998 7:30:00 PM
From: Cosmo Daisey	Read Replies (2) \| Respond to of 900

Dr. A, The practice of showing double volume accounts for much more volume than actually traded. The 310,000 shows as 620,000 so that only leaves another 72,000 that actually traded. The news release could have read like this: Texas/Reuters US Today the chairman of Ergo Built (ERGB) dumped in excess of $1.2 million dollars worth of his companies stock while complaining that the short sellers were responsible for the recent decline in price. Is the complaint justified or just some smoke to cover his dumping of shares? Well known short seller Manuel Asensio who has an internet site that has issued a short report may feel justified in seeing the price decline to the $3 dollar range after issuing his report in the $12 range. asensio.com A heated discussion has been going on in cyberspace at the Silicon Investor site. Two sides each accuse the other of lying and one side feels the other is working for the company. Disclosure of past dealings for compensation were made by one poster probably using an assumed name as is common on SI. No explaination was available as to why the price moved higher today while the chairman was dumping his stock.

To: Anaxagoras who wrote (781)	3/25/1998 1:04:00 PM
From: Jim Patterson	Read Replies (1) \| Respond to of 900

Part of it is block trading tactics. The share holder calls the broker with the trade, Inthis case, a sell of 300,000 sh. The broker's Marker makers start trying to find a home for the stock and a price it can be moved. In this case, they found a buyer @ 3 1/16 Now knowing they can Sell all the stock they have at 3 1/16, they will sell short the stock to anyone that wants to buy on the way down. The more stock the Market maker sell short, the better his spread. In block trading, the block never showes up in the level 2 because it is not an aciver order until it is exicuted. Maybe this helps, maybe it dosen't Jim