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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Paul Fiondella who wrote (23125)	7/20/1998 10:08:00 AM
From: alfred felsberger	Read Replies (1) \| Respond to of 42771

Paul, why did you cover when it's a "downward bias"? Short more!

To: Paul Fiondella who wrote (23125)	7/20/1998 10:15:00 AM
From: Ben Antanaitis	Read Replies (1) \| Respond to of 42771

Paul, Anybody got another explanation of this or are we all clueless Well, here's a stab at it... As of Saturday night, ~544900 shares (~5449 call contracts) were auto exercised and had the shares transferred to today's new owners, who have to close out the purchase during today's business day. Assuming that the new owners are traders and not investors, first thing this morning they might have 'at the market' sell orders in to unload the actual shares that they had no intention of holding in the first place, gaining whatever profits they might have from the original purchase and any Monday morning 'pop' that might have occurred. If they don't have the cash to cover the stock purchase, they are pressed to complete the transaction early in the day, and will not wait to 'see what happens' during the day. This early selling pressure caused the down side price you are remarking on. If this hypothesis is true, then the price should rebound with any subsequent buying pressure. JMHO Ben A.