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To: Ish who wrote (21471)3/28/1999 4:08:00 PM
From: Mephisto  Read Replies (1) | Respond to of 24894
 
SEC investigates MERLIN, aka CHRIS RHEA.

"The shares he often touts make impressive trading spikes. But when the buying stampede slows, the stocks quickly drift down."

"It is doubtful that all the Merlin followers who piled into these stocks were able to get out before they fell. But documents now trickling in show that another cast of characters made big money on the sudden popularity of these shares ~ corporate insiders."

"There's nothing wrong, of course, with insiders taking profits in a rising stock. But such sales may suggest that the people who know a company best don't expect the shares to keep going up. Bob Gabele, who tracks insider transactions for First Call in Rockville, Md., put it simply: Investors who are rushing to buy have to worry about who's heading for the door."

Excerpt from an article by Gretchen Morgenson in The New York Times, Sunday, March 28, 1999, Section 3.