Originally Posted by
skid
Yes,If the underwriter gets stuck with alot of shares a crash would certainly not benefit them(I probably shouldnt have used the word dump)
They will,however, have to unload those shares in the best fashion they can so they can get back to their normal business. The SP will have to suffer if this comes about.
Meanwhile Im intrigued at what appears to me to be the games they play. Yesterday the SP closed at .62--After close a large amount 300,000 changed hands at .61 so today some one has put a buy for a measly 3000 at .62 so the SP will start at .62 (pay no attention to the man behind the curtain)
On a normal day of PEB trading we see buy and sells that of course vary, but the volume is normally in the same ballpark. Now we are seeing huge volume on the first 2 buys and huge volume on the first 1-2 sells--then they both drop down to normal size orders.
Its like a game of chess-(the underwriters on the buy side for the next 12 days-then on the sell side for the next Xdays)-It would be interesting to know how many separate agents the underwriters have buying.