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Non-Tech : NovaCare Employee Services (NASDAQ:NCES) -- Ignore unavailable to you. Want to Upgrade?

To: Todd D. Wiener who wrote (316)	4/1/1999 2:38:00 PM
From: Dave Hanson	Read Replies (1) \| Respond to of 376

Todd and all, I generally agree with your two points, though I'm inclined to think that at this juncture the second (runup) is much more influential than the first (NOV's woes,) since (a) the correlation in price action has eroded dramatically, and (b) NOV's previous sub-2 woes have offered plenty of occasion already to scare out hands suceptible to this argument. Your volume point is especially apt, IMHO--despite the gradual, painful decline of shares throughout the day so far, there are few big sells, and 1/4 of yesterday's volume. That suggests to me that little guys don't want to see their gains evaporate, for whatever reason. I also agree with you in general on MM manipulation, but as I posted earlier, it's very hard for me to see how it was operative here--especially when the factors you cited would account for the winding down. If not rumors of a pending deal, perhaps it was a mutual fund that wanted to get in by 1Q end. In any case, such conventional explanations strike me as more plausible here. Would welcome any contrary thoughts you might have.

To: Todd D. Wiener who wrote (316)	4/1/1999 5:00:00 PM
From: Apakhabar	Read Replies (1) \| Respond to of 376

Todd, Are there any restrictions on NOV ability to sell their shares of NCES? Let's imagine a worst-case scenerio for Novacare: they can't solve their debt problem and they need to raise cash to stay out of bankruptcy. So they sell their stake in NCES. That would certainly create an unholy selling pressure on NCES shareholders. I'm not saying this is likely, but is it not possible? And if possible, isn't this a risk that NCES shareholders should be aware of? Long-term, I think it would be good for NCES not to have 70% (is this still the number?) of their shares owned by NOV. Your view?