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Technology Stocks : Avtel Communication (AVCO) -- Ignore unavailable to you. Want to Upgrade?

To: Kevin McKenzie who wrote (334)	11/15/1998 1:48:00 AM
From: Mark Davis	Read Replies (1) \| Respond to of 461

The scenario you outline is basically correct. The MM will short on the runup, expecting/hoping to cover lower. This usually works in saner times. As for the 'halt' being ad-hoc....... I'd say a run from 2 3/8 to 31 in one day is sufficient reason to cause NASDAQ, the SEC, the FBI, the CIA, (well you get my meaning), to investigate and let the dust settle a bit. Or, let's everyone keep buying, run this puppy to maybe $150/share and bankrupt the MM's who tried to fulfill their obligations. Every day, we get a new 'poster boy' for the insane runup sweepstakes. BTW, I am NOT on the MM's side at all. As nutty as the market has gotten, once again, maybe the powers that be are getting a little concerned. I don't blame them.

To: Kevin McKenzie who wrote (334)	11/15/1998 11:19:00 AM
From: Charlie Smith	Read Replies (1) \| Respond to of 461

Kevin: Now, it seems NASD has doomed the current holders to severe losses. (And guaranteed the MM's some tidy profits.) That seems irresponsible of NASD. Irresponsible? Who are they "responsible" to? NASD = National Association of Securities Dealers. They're doing their job. Caveat emptor. Charlie

To: Kevin McKenzie who wrote (334)	11/16/1998 2:06:00 AM
From: Jonathan Babb	Respond to of 461

Now, it seems NASD has doomed the current holders to severe losses. (And guaranteed the MM's some tidy profits.) That seems irresponsible of NASD. Sure, blame it on NASD. The point of the market is supposedly to invest in stocks, not play pyramid games. The normal function of the MM is to sell liquidity by buying/selling stock when the market is temporarily imbalanced (either over minutes, hours, days, or even much longer). Just like any broker. NASD stepped in because the market was not functioning correctly. Anyone that bought AVCO for a long term investment should not be concerned about the halt. However, short term speculators were caught in a risk they should have known was always present if they did their diligence. BTW, the rules are currently to protect both the MM and long term investors on margin. Not speculators or shorts - who cares about protecting them, they are intentionally taking extra risks, not buying insurance. They don't want protection that lowers their risk because that protection will generally also lower their prospective return. That said, it is neat that online gambling is legal. Jon