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Technology Stocks : MEMC INT'L. (WFR -NYSE) The Sleeping Giant? -- Ignore unavailable to you. Want to Upgrade?

To: All Mtn Ski who wrote (3342)	5/20/1998 10:02:00 AM
From: Scotsman	Respond to of 4697

I think that the volume spikes we saw about 3 months ago were company buybacks. If you look at the outstanding shares on the last quarterly report they were down from the previous quarters. Previous quarters have always had the same amount of shares outstanding. Thus I must assume this is the buyback as it would not be options related at this low price. Sorry, I don't have the info with me, but I think I posted it around the end of last month.

To: All Mtn Ski who wrote (3342)	5/20/1998 9:29:00 PM
From: Carl R.	Read Replies (2) \| Respond to of 4697

955k shares short really isn't that high. I think the float is about 20M or so - anybody have a better number??? But with volume down around 30,000 a day it would take a long time to cover should the shorts decide it was time to do so, which could lead to a nice spike up in price. Of course some of the shorts are related to arbitrage, but there really isn't a lot of open interest in the options, so that won't account for it. Regarding the SEC rule, you refer to them buying back up to 25% of the average daily monthly volume on any given day, but for which 30 days? The prior 30 days? Or the prior calender month? Or the average of the last three months? Or the last year? Considering that not long ago the average daily volume was much higher, more like 100K it makes a big difference. Even a purchase of 7500 shares a day would probably be enough to support the price at these levels considering the lack of selling volume. There just doesn't seem to be much interest in selling below 14.5. Considering that the stock is trading under book value, I'd have to guess that they'd be willing to go through with the buy back, which will then have the effect of increasing the book value. Not often you get that effect! Considering that their debt-equity ratio is now up to 91% they might be a bit cautious, but I'd think they'd still do it if they think they can swing it. If you ask me, (which you didn't <G>) the ingredients are in place for a nice shot up. What we need is a clear double bottom, followed by an increase in volume. I may add a few more shares this week myself. Good luck, Carl