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Technology Stocks : Stock Swap -- Ignore unavailable to you. Want to Upgrade?

To: Tech Master who wrote (13611)	5/5/1998 1:20:00 AM
From: Andrew Vance	Read Replies (1) \| Respond to of 17305

AV--All I can say it that I cannot fault your logic one iota on CGLB . Here's the problem, though. How do I take a flyer on this stock for let's say, 20,000 shares ($15,000) without it doing a massive jump on the bid/ask. This type of transaction would be equivalent to 40K shares on volume for a stock that traded 233K today, total. Going at it in 1K chunks might be the way but if I stated that here, we could see a mad rush to the stock or some manipulation. Also, it becomes real difficult to do this through normal channels since my transaction fees run from 4-6 cents per share. I am better off dealing with a market maker directly or to use one of the online brokers for the low trade commissions. Unfortunately they cannot pick away at this stock automatically. I have to spend time doing the trades individually, which might be counter productive. Therefore, I am keeping quiet about what I am doing with regards to this stock and when I do it. And in light of today's action, I will say that I can take a chance with additional shares of CGLB. Dealing in the below $5 stocks has been problematic for me in the past and is one reason I normally shy away from them. I think we saw some sympathy action out of CGLB today related to ENMD. IF and when CGLB takes off, I may have a decent position but it may not be large enough to amount to significant dollars, unless it goes ballistically up into the teens or 20s. I did pick up some shares last week but not a huge dollar amount. After today's action, I do not think I will be eager to add to the position tomorrow but would rather see if it retraces as ENMD does its retrenchment tomorrow. Don't get me wrong on this. I think CGLB might find a comfortable home in the 90 cent region or above, pending real meaty developments, which is a nice pop from today's 73 cent close. But these types of stocks are very tricky to accumulate and to dispose of at the appropriate times. This is what makes them dangerous for me. If I accumulate 20K shares, I doubt I could unload them all at once and would have to peel off the shares over the course of the day or a few days. The liquidity is real tricky here UNLESS you are selling into a major run up as you suggest might be the case here. Imagine the issues with a larger position. Again, just some random thoughts on this subject. I have accumulated some shares but not alot. The shares are costing me more due to commissions. A huge block trade has been unsuccessfully initiated due to an simultaneous increase in the ask since the volume requested exceeded the ask size offered. The same thing happens with FTEL. Everytime I put a specific buy order in with volume, the bid reaches the target but not the ask. the bid/ask then starts to move away from me. Basically I have not mastered the art of buying these low priced stocks without bumping the price up or paying more commissions than they are worth. Any help in a buying strategy would be appreciated since ABMI seems to fall into this category also. Andrew