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Technology Stocks : Creative Computers(MALL) -- Ignore unavailable to you. Want to Upgrade?


To: Dave who wrote (1128)12/4/1998 5:29:00 PM
From: Tom Hua  Respond to of 1634
 
Dave, Today's action prompted me to update the trading formula for
MALL and UBID. It is

M = f*0.72*U + 10

where "f" is a market efficiency factor to account for the fractional
UBID value in MALL. I was watching the relationship between MALL and UBID
all day. In the morning, f = 0.6, dropping to 0.5 in the afternoon.
For reference:

UBID f=0.9 f=0.7 f=0.5
------------------------------------------------

30 29 25 21

35 33 28 23

40 36 30 24

45 39 33 26

50 42 35 28

55 46 38 30

60 49 40 33

In the afternoon, M is trading with f = 0.5. My guess is f will reach
0.7 in the next two weeks, approach 0.85 after 30 days, and of course
equal unity one day before distribution date.

Regards,

Tom