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Technology Stocks : Nortel Networks (NT) -- Ignore unavailable to you. Want to Upgrade?

To: Claude who wrote (810)	9/17/1998 9:56:00 PM
From: Serge Collins	Read Replies (1) \| Respond to of 14638

Why the stock collapsed in late trading. NT got whacked hard in the last hour of trading and there are a few reasons to explain it. The first is that the stock was sold out of margin accounts that wouldn't or couldn't cover. With the recent weakness in the stock, many margin players were borderline and facing calls if the stock fell further. That happened this afternoon. Brokerages are indiscriminate when it comes to liquidating uncovered margin positions and you could see it in afternoon trading. The other is the number of stop loss orders that were triggered in late trading after the stock fell below $40, a typical stop loss point. The specialists and traders were more than happy to buy and institutions will join in to average down their costs or take positions. Both of these developments are technically positive for the stock in the next few weeks as many weak hands folded today. Relax and ride out the volatility.