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Technology Stocks : Trading TAVA -- Ignore unavailable to you. Want to Upgrade?

To: JDN who wrote (407)	5/19/1998 7:31:00 AM
From: Rob L.	Read Replies (1) \| Respond to of 655

Agreed JDN, issuance of paper does not make any sense right now. Company seems to have enough capital to operate for a while and cash balance is rising. Dog and pony show is to increase institutional ownership IMO. Keep in mind that MM know there are many holders of Tava out there that are going to want to write calls on this stock when the options start trading. Here's my scenario of what is partly going on: MM tries to pull stock down --> call premiums will be lower upon trading --> holders of Tava stock write call at lower premium --> MM buys calls with lower premiums --> good news hits wires --> stock rises --> call option rises --> MM makes turns nice profit --> Tava shareholder stock gets called away --> return to beginning and do it again. Doesn't anyone think it is odd that the highest strike price is only 15. When the options were announced the stock was at 13 and it has been up over 100% in the last six months. Of course, Tim's comments on a seller around also fits. However, maybe the seller is selling so that he/she can free resources to purchase lower priced calls. There was too much volume to be considered only MM manipulation. However, there wasn't enough volume to suggest bad news. Company gave no hint of any problems in CC last week so I doubt there is any bad news this soon after the CC. Regards, Rob