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Biotech / Medical : XOMA. Bull or Bear? -- Ignore unavailable to you. Want to Upgrade?

To: Edscharp who wrote (8990)	3/8/1999 2:21:00 PM
From: Bluegreen	Read Replies (1) \| Respond to of 17367

Yeah, but Ed, why would anyone BUY at these prices? Not just a few shares traded this am. Someone had to BUY at these levels, supported the price at these levels, WHY? That is the question.

To: Edscharp who wrote (8990)	3/8/1999 3:22:00 PM
From: Slugger	Respond to of 17367

<<The answer, which sounded plausible, was that it was due to a bloc sale. A buyer will pre-arrange to purchase a large block of shares at an already pre-arranged price. Apparently, this is common. >> I was told once that institutions will go to MM and ask them to find buyers for their shares. When the MM finds one they go back to the institution and tell them they have a buyer but they will only pay $X. After negotiations the two sides agree on a price and the MM will "magically" get the stock to that price. For example, if one month ago, when X was at 3 1/2, an institution went to one of XOMA's MMs and said I need a buyer for 50,000 shares, the MM might have a buyer who would agree to buy X for $3. The MM would then spend the next few weeks working the stock down to that price so that the deal could be completed. Having said that, I don't think that is what is happening here. I think we might have the MMs driving the price down to accumulate shares for their own accounts or to close out their short positions. Closing out their shorts would be my first bet, I don't think the MMs want to be short or long going into the DSMB announcement.