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Technology Stocks : Altaba Inc. (formerly Yahoo) -- Ignore unavailable to you. Want to Upgrade?

To: Pruguy who wrote (21900)	5/29/1999 9:10:00 PM
From: -	Read Replies (1) \| Respond to of 27307

Well, I didn't mean to state those as proven "facts", hopefully it wasn't implied. But there is some logic there. You need to be a NYC Financial Community "insider" to have the real story on that sort of thing, like Cramer - he runs $250M as a hedge fund manager, used to run a trading desk as a market maker. So, he's very connected and knows how these things work. Some of the "facts", which are known: - The stocks got ahead of themselves (ran up into a technically "extended" state before this correction started. e.g., YHOO rallying 50pts to 244 in a few days. So, not surprising to see a good pullback, but >50%? Pretty severe. Something else besides normal market psychology (technical action) at work here. - Many institutional guys "hate" these stocks and love to short them. Institutional ownership of YHOO now is 21% (growing) but still low, compared to say AOL which is >60%. - HEAVY, MASSIVE selling in internets across the board in the past month is not due (this time) to any new, fundamental news like missed earnings, or any known bad news for the sector. More likely, due to "internal" factors like big insider sell orders. Insiders are the only ones with large enough positions to cause such a huge wave. Individuals investors could trigger this sort of thing if they sell enough to scare each other, but usually that's less overdone. This is what led Cramer to speculate about the derivate action, which makes a lot of sense (it's logical). No reporting requirements that I know of for constructing synthetic hedges. - Bears (institutional shorts) would love to see these stocks down, and have been putting out a lot of "illogic"... like "the reason the internet stocks are down, is due to possible higher interest rates". I just don't see the individual holders of internet stocks (80% of holders) selling heavily due to possible 0.25% Fed bump... and these companies (except for Bezos:) aren't generally big borrowers, where they're operating results become sensitive to irates. Irates going up do of course tend to pull stock money into bonds, but that is the conservative money that's in GE/GM/etc... not the internet invnestor. - The reason to suspect insider selling in these stocks now?: it's been well documented in SEC filings over the past six months, and Cramer reported that institutions have been working large sell orders for individuals on thestreet.com, recently. It's a fact that these Regulation 144 windows close up about a month before the earnings report for many companies, so they have to finish their selling by then. For many internets, that would be now to mid-June. Just some thoughts for intelligent discussion... I always like to figure out the "real" WHY when you see a big correction... don't buy the "impending internet sector collapse" theories... maybe the guys shorting these would love to own them, and are driving them lower to take stock from margin'd holders at lower prices. I took the opportunity to load up a little myself! -Steve