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.

Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Ralph Bergmann who wrote (2447)	4/23/1998 12:19:00 PM
From: cellhigh	Respond to of 16960

blood is in the streets NOW! this is a bloodstained stock for sure.

To: Ralph Bergmann who wrote (2447)	4/23/1998 12:21:00 PM
From: astro	Respond to of 16960

Wow what a bargain. astro

To: Ralph Bergmann who wrote (2447)	4/23/1998 12:21:00 PM
From: Chip Anderson	Read Replies (2) \| Respond to of 16960

Its just a theory but if you read my previous post (and link) on how the VC people get paid, it totally makes sense to me. The locked-up shares belong to the Venture Capital people that gave TDFX money a _long_ time ago. They are now able to get their money back out of the stock at a whopper of a gain. These shares are brought to the market directly through the Market Makers. The price action this week is _exactly_ what happens when the MMs have a big market imbalance to deal with. The spike up at the beginning is artificial to take care of the people who (foolishly) placed market buy orders overnight. It also generates "greed" feelings among short-term traders. The price then slides until someone else steps up to the plate. The MMs then "shake" the price until people think a support level is in place (they also create artificial "buy" signals in things like Stochastics, etc.) Notice the large spreads when the stock appears to be in a short trading range? Shaking works for a while, but then they give up and let the stock slide some more and repeat the process at a lower level. The big slide at the end is because some of the sell orders are "day" orders and are about to expire. This is just a theory, but it makes the most sense to me. Keep in mind that TDFX is relatively thinly traded. The TDFX price action is very different from "news" action and is obviously being manipulated. Unless FIDO is selling (and I've seem no indication that they are), its got to be the lockup shares. Chip