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To: Ralph Bergmann who wrote (1729)6/11/1998 9:24:00 AM
From: Harold Finstad  Read Replies (2) | Respond to of 4230
 
Ralph, No the changing of the name and cusip does not cause anything to happen except a bookeeping entry to be made at the brokerage firms that hold the stock positions, long or short. If anything, it would make a short want to short more. Reason being is that in TGSK's case, the Press Release was written in a style and at a time that might give the impression that this was the Company's goal. Ie. "The Company will notify its stockholders of the changes and advise them to exchange their existing certificates for new certificates containing both changes." Any savvy short seller knows that there is no necessity for one to turn in his certs to have the change made. Any positive announcement short of a major announcement like strong earnings or a share buyback forces the shorts to immediately "hit the stock" to make the news look like "no big thing" to shareholders. Thereby "cooling off" the excitement quickly.

Re your question about heavy volume. I agree it is definately abnormal for the reported float. But you must understand when you have 25 plus MM's in a stock that trades with such a "tight" spread, you have a lot of MM's playing with each other. Lifting each others bids, hitting each others offers to make a penny here and there. each time this happens, you get volume posted. I would be surprised if more the 25-35% of any of these days volume were generated by real investor buying or selling.