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Strategies & Market Trends : From the Trading Desk -- Ignore unavailable to you. Want to Upgrade?

To: steve goldman who wrote (4354)	3/20/1999 10:49:00 PM
From: KM	Read Replies (2) \| Respond to of 4969

Steve: I saw something weird on Friday and wanted to see if you could figure it out. I was watching level 2 on Rambus all day since I had taken a short position near the open. Around midday, a 50,000 share bid by NITE showed up at 71.5. I think the stock was trading slightly below that at the time. Okay, that bid got hit in two blocks shortly after it came up. The stock traded up a bit, maybe an eighth. Then about fifteen minutes, later, another 50k bid from NITE appeared at 71.5. This time, right after it showed up, a few bidders jumped ahead and the stock traded up to 72, so the NITE bid moved down, but stayed posted. I figured there had to be news or something, so I checked and found nothing. When the sell programs started, the stock started down and the NITE bid started getting hit. It took probably 30-45 minutes from the time it appeared until it was finally taken out in smaller blocks. Then, the stock traded down from there the rest of the day. Now, I've been watching Rambus since the day it went public and I cannot recall ever seeing anyone advertise a bid of that size on it, much less two in quick succession. Second, I thought NITE was ETrade or some brokerage firm devoted to smaller investors or daytraders. Why would someone who wanted to acquire a large block of Rambus (which I think has a fairly small float) advertise their intentions that way? And would they use NITE to do their buying? I'd like to hear what you think of this. It confused me. Thanks. T