Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (1826)	8/20/1998 2:18:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 4509

Chuzzlewit, good logical analysis. What you said is what I've been thinking, I just didn't put it so eloquently. My problem with the whole idea that MM's can manipulate stocks is that it just doesn't seem to be in their best interest. The risk is just too great that they will lose their shirts. I asked a friend of mine who was with the CBOE and he said, exactly as you said, that the only time you'll see manipulation is when there is collusion of some sort. Otherwise, the momentum can bancrupt a MM before they even realize it's happening. I guess it comforts some people to believe that the world is against you when things aren't going your way. My personal response on a stock like PSFT, is simply to buy more. I'm sitting on a loss right now, but a year from now, it will be an unrealized gain. Patience is the forgotten virtue. Good luck investing. I always enjoy your posts.

To: Chuzzlewit who wrote (1826)	8/20/1998 3:20:00 PM
From: LLCoolG	Read Replies (1) \| Respond to of 4509

Paul, The money they will lose will be several times smaller than the money they make my in-the money puts and expiring calls. And I would not term it as actively causing a price depression in the stock. On NASDAQ, it is very, very simple. The bidders just get out of the way, and hope that people panic and sell. Yes, stop orders are some of it, but people get sick of a stock not gaining, and they say, screw this, I'm out. That happens a lot more than you think, especially when people see stocks like DELL nd AOL just keep ringing up gains, while PSFT dries up. Greedy people see the short-term opportunity costs as a reason to trade out of stagnant stocks. This is a routine occurrence, and a passive activity--just like your beloved short squeezes. Regards, G