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

To: Robert DeHaven who wrote (784)	3/25/1998 8:34:00 AM
From: tonto	Respond to of 900

Additional release: Tuesday March 24, 6:19 pm Eastern Time ErgoBilt chairman closes margin position DALLAS, March 24 (Reuters) - ErgoBilt Inc. said Tuesday a brokerage firm sold 310,000 of the company's shares to close out Chairman Gerald McMillan's margin position at the firm. The company said in a statement its management team believes the move can put an end to some of the short speculation in the company's stock. The reason for the stock sale is not because of anything to do with the company's current operations or future, ErgoBilt said. In August 1997, McMillan borrowed to buy 500,000 shares of ErgoBilt's stock at $7.80 a share, increasing his position to about 2.5 million shares, the company said. ErgoBilt develops ergonomic products and technology.

To: Robert DeHaven who wrote (784)	3/25/1998 9:12:00 AM
From: Anaxagoras	Read Replies (2) \| Respond to of 900

Hey Bob, great post. Thanks. That's sort of what I was thinking/hoping for my trade. I was wondering if you or anyone else might be able to help me out on one other point. You wrote: <<5. the stock declined in advance of the sale.....therefore the market makers knew it was coming and did not want to get hit with alot of selling.>> Yes, it had declined for a while, and if your hypothesis is correct, then it appears that the MMs knew about the sale for a while, several days at least. How? Did Mac have to start negotiating the liquidation of his margin account awhile ago, which info was passed from broker to MM in trying to find someone to buy the lot? The question is, just how did the MMs know so far in advance that the sale was going to occur? Thanks for any light that can be shed. Anaxagoras