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Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: Brooks Jackson who wrote (1171)	1/20/1999 10:19:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

Thread, The below is guesswork on my part, but I may have an explanation for the volume. Market Maker activity Oct Nov Dec Year Mayer & Schweitzer 189,182 113,724 95,515 1.267M Knight Securities 68,590 123,568 89,701 .569M Paine Webber 71,612 73,150 68,688 1.023M Troster Singer Corp. 166,376 35,870 54,860 .900M Herzog, Heine, Gedold 450,298 110,027 29,997 1.445M Presume that someone (hedge fund?) was forced to quickly (NOW!) sell a large block in October. There would not be that many buyers for a quick sell of a falling stock in a falling market, but someone was willing, perhaps the MM, to buy at $6.00. Most of the shares obviously went thru Herzog, Heine, Gedold. We can presume they would also handle the selling. HHG volume indicates the shares did not hit the market in Nov or Dec. (Taxes?) Conjecture - Deswell was buying below $10.00 in Nov and Dec. They then told their broker that they would buy below $10.00 until they filled out the 500K shares. This would let the MM make a buy/sell market at the $10.00 level until the October shares were gone. Some that bought hoping to profit on Deswell gave up and sold back at $10.00. Many that bought lower expecting a higher return settled for the $10.00. This added to the shares on the sell side. It has taken until now for the buying strength to absorb the sell side. From the volume, it indicates that some of the buying is Fund related. Just putting it out for thought. The volume at this level with no price movement has been bothering me. FWIW, Ron