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Technology Stocks : MRV Communications (MRVC) opinions? -- Ignore unavailable to you. Want to Upgrade?

To: Sector Investor who wrote (12772)	4/15/1999 9:27:00 PM
From: ahhaha	Respond to of 42804

Maybe you could explain roktar's claim to me: A Hedge Fund devised an arbitrage based on the MRVC convertible bonds and stocks and a recent networking IPO (specializing in layer 3 technology). MRVC was bought agressively through one market maker, Instinet and one ECN at the same time, hitting market makers without giving them a chance to turn around, hence the panic buying in a short time. I assume it means that a hedge fund bought MRVC converts and stock and sold XYZW's stock short. I also assume that this person claims market makers won't back away from abnormal demand. Most on SI claim market makers back away from below normal demand. Back on the so-called hedge. The correlation coefficient between two separate companies is completely unstable. To create such a hedge is not hedging. You're just long X, short Y. How would roktar know who was behind the buying of X or the selling of Y? Not even market makers handling such orders would know from whom they came or whether they were from the same entity. Regis McConnell has the best idea of why the shares moved.