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Biotech / Medical : Catalytica Energy Systems, Inc. (CESI) -- Ignore unavailable to you. Want to Upgrade?

To: dogcamp who wrote (1164)	5/8/1998 8:15:00 PM
From: James Perry	Read Replies (1) \| Respond to of 1514

My guess is that a substantial buyer has come into play. In the accumulation of a large position, only an idiot would apply constant buying pressure. Rather, you put in an order for some number of shares (did I hear 85000 mentioned?). It cleans out the marketmaker's "book" of offers at or near market, and takes the market price some amount higher in doing so. Then you stop and wait for other prople to offer their stock, for to do otherwise would take the price up more than prudence demands. And when that stop occurs, as there are no offers close to market price (because of the buying which has just occured) the price sinks. Now you can come back this afternoon or tomorrow or next week to buy more. I haven't looked at the hourly chart, but from the comments being made here it sounds as if that is what is happening.