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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI -- Ignore unavailable to you. Want to Upgrade?


To: Gurupup who wrote (2395)6/5/1998 12:40:00 AM
From: BuzzVA  Respond to of 5736
 
As Sean Connery said in THE UNTOUCHABLES,

"When one of theirs pulls a knife, you pull a gun. When they send one of yours to the hospital, you send one of theirs to the morgue. That's the Chicago way."

Thrilla-in-Manilla will look like a Jerry Cooney fight after this is over and done with.



To: Gurupup who wrote (2395)6/5/1998 11:33:00 AM
From: paideia  Read Replies (1) | Respond to of 5736
 
Sir,
Thanks for responding to my inquiry. So, if I understand correctly from your post, this is where the upward movement in the price of CCSI is mostly going to come from once The Deal is announced:

"So the day of the deal , sometime in my lifetime, a portion of the short interest is in retail hands, and margin calls will finally go the other way, to the tune of 500,000-800,000 shares. I know a number of longs , who have small cost basises who will be happy to add 25%+ to their positions, because they will be playing with the houses money. There are a number of institutions, and MM's who are awaiting a deal, because the pendulum can swing 2 ways, and they can smell blood also. Where is the stock going to come from, a lot of small investors, who are finally making some money, or are even, GOOD
LUCK."

The price of CCSI will advance on the basis of short covering, longterm holders adding more "for free" using existing profits, and funds and MM's buying on the news. Your expectation is that this buying will be significantly larger than the profit-taking that will inevitably take place on any announcement.

Seems like a reasonable scenario to me. I guess the real test will come with the announcement of a deal and exactly how people perceive the particulars. Again, thanks for responding.



To: Gurupup who wrote (2395)6/5/1998 12:57:00 PM
From: Ron Harvey  Read Replies (1) | Respond to of 5736
 
<< The balance is held by small traders, who have bought on margin for the deal, and will be sellers on the news.>>

Certainly some will be sellers on the news. But the nature of the news will determine, I think, how many will sell. The deal, I'm assuming, will have some market size and revenue projections appended. The nature of these, if positive, will invite new buyers as well as current holders to increase their positions. And if the implications are exceptionally good, knee-jerk sellers will be selling into a rising price and the wait-and-see guys will be rewarded. The deal, after all, goes well beyond just having a deal.