Thanks very much r4r4 for the references. Are you
of the opinion that the proposed all electronic
systems, we keep hearing about, will eliminate all these
evils and let stocks sell at something close to what
they are really worth?
(the column on the right hand side of the
different perspectives but both are pretty interesting.
Again, long term it won't make much difference but it
sure can be very painful if you were caught at the
point where the turn starts.
I would be very interested in the link. What I
know about MMs and shorting was learned at:
Can I summarize what you have said as: Since PLCE has
options, a conspiracy of market makers and hedge funds has
kept it undervalued; in the case of DIOD, which
doesn't have options, its problem is that institutions
don't know about the stock? Many thanks.
Every time MMs sell (to the public, to their own
accounts or to each other) they are essentially shorting.
As far as keeping the price down if there is buying
pressure, in the long run this won't affect stock price and
is a short term phenomenon. IMO, in DIOD's case the
MMs are not driving it down; there are simply no
institutional buyers. If I can find it, I'll post a pretty
interesting link regarding MM/Specialists.
2. My wife
has been trading this week and left several stock
tickers on the computer. I was reading the day's trade
from Medved. (Although we have Level 2 we use Medved
because it works better for us).
<<They dropped the bid through a 2K buyer
to scoop up a 10K seller at 16 1/2 (SV-was that
I would be at the buy side if we hit the $16 point.
I would prefer to have DIOD go stratight up from
where we are now. However, if it does hit the $16 gift
horse buying level, you will see me.
Mr. r4r4, thank you for your detailed
explanation. I have been trading for only a year and only
partialy understood what you were saying. Here are a
couple of follow up questions.
1. I thought there
was an SEC rule that market makers can only short at
a price higher than the current inside bid. So how
can they keep the price down if there is is buying
pressure from a lot of people who want the stock? I assume
a lot of people knew about the good earnings report
and wanted to buy, recently.
2. I checked the
intraday charts, for DIOD, on both Yahoo and Moneycentral
and couldn't see the trades you mentioned. For
example, at the beginning I see only a 6.4K sale at 17 1/4
followed by a 7K sale at 17 3/4.
Thank you kindly.
Can you explain why these two charts are so
grossly different? The volume you quote for today is more
or less in line with the Chart of Individual
Investor. But look at Yahoo! It shows two large blocks: one
for about 28,000 shares sometime before 10 a.m. and
the other for about 32,000 sometime before 11 a.m.
In the case of Diodes low volume simply means
support and the price needs to be adjusted. The MM has to
make a decision, higher or lower. I'm betting I can
wait him out and make him come to me. But for this
plan to work I'll need everyones help.
When will it be up? If we knew that we wouldn't
be shareholders until that exact moment now would
we. How long have you been a shareholder? A week or
two. Hold, buy more if you think its going up, or sell
if you think its going down. Its very simple. As
always, Good Luck.
I am in DIOD for more than last
months. No sell, only buys.
Ended up putting in 60% of
in this @ avg. price of 25 (split
adjusted), now I don't have any left to buy @20.
long on this but it's
frustrating to see this
neglected by the street and falling
A little history lesson from us long time
Last year on 6/4/99 DIOD announced their initial $4.5M
expansion due to growing demand. The stock jumped from $5
to $8.625 on the news and trended higher through
July with the high hitting $9.75 in mid July (prices
are not adjusted for split).
Everyone knew or
should have known that earnings growth going forward was
a sure thing, yet the summer doldrums set in and
the stock drifted aimlessly from August through mid
October. It hit a low during this period of $5.75 (a P/E
of 12) before trending higher ahead of the Q3 report
and then it took off after the report due to the huge
earnings, and forward looking comments. It then continued
to trend higher through the end of the year and
I share this because of what may happen again this
year between now and mid October. Once again, everyone
knows or should know that more EPS growth is coming yet
we may drift lower and lower during this late summer
period and into the fall. We may even hit a low of 15 (a
P/E of 12) like last year. But know this - if this
happens we'll be primed to explode with a Q3 report like
Day to day, week to week, even month
to month - you never know how the market will
behave. Longer term price follows earnings and I maintain
$2.14 in EPS for FY2000 and a $43 stock price before
year's end. How we get there - who knows. The only thing
I do know is that it won't be a straight
Best of Good Buys.