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Biotech / Medical : Eli Lilly -- Ignore unavailable to you. Want to Upgrade?

To: Ron Flanigan who wrote (202)	5/3/1998 1:18:00 PM
From: kas1	Read Replies (1) \| Respond to of 642

imagine you are running some institutional money. imagine you want to get that money into eli lilly, but 1) the stock has gotten away from you in terms of price; you wish you had bought it when it was 60 or so and 2) you are running huge amounts of money; you cannot just place a buy order at market. there usually aren't enough sellers to take the other end of your stock acquisitions. so you talk down a stock. you issue a downgrade, maybe leak a rumor that they'll miss the quarter. it drives the price down, and creates lots of willing sellers (hi volume) so you can acquire stock cheaply and without worries of making too big a splash in price action. to what extent this is done is one of the great debates on si, and elsewhere. but everyone agrees that it is done sometimes.