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Pastimes : Can SI Members Really Manipulate Stocks? -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (132)	7/31/1998 10:49:00 PM
From: EL KABONG!!!	Read Replies (1) \| Respond to of 461

Jeff, Bigger companies do it in more subtle ways. The most common method is to simply not release any good news in a timely manner, leading analysts and investors to speculate that something is amiss, and then market forces take over. This tactic is especially useful when the company is not actively engaged in acquisitions or negotiating private financing from a lender. Failing to deny rumors is a variant on this ploy, or denying them in a manner that sounds not entirely truthful. Another tactic is to delay new projects or other tasks that would be viewed as positive by the market, until such times as it is financially feasible to do so. I'm not necessarily referring to the company's finances either. KJC

To: Jeffrey S. Mitchell who wrote (132)	7/31/1998 11:05:00 PM
From: Probity98	Read Replies (1) \| Respond to of 461

Jeffrey, Consider the following scenario (hypothetically speaking): a company looking to acquire another company made a deal in cash & stock, and agreed to a set $, # amount, respectively. Then the value of the stock unexpectedly increased and the company to be acquired would not agree to a lesser amount of stock shares. Could the CEO of the company making the acquisition reduce the value of his company's stock to accommodate this deal? Your insight is greatly appreciated.