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Technology Stocks : MicroStrategy Inc. (MSTR)
MSTR 176.80-3.4%3:59 PM EST

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To: zax who wrote (675)4/24/2001 1:49:38 AM
From: Jay Fisk   of 714
Lets look at the timing - On Tues 4-17-01 at 3:15 MSTR scheds a Conf Call for 4-30-01. They've already pre-announced larger-than-expected losses earlier in the month.

Wednesday is spin-control day. Earnings are far worse than anyone expected earlier. Only seven days to unload shares before the 30th and the volume is anemic. What to do ???

Hence the infamous "Letter to Shareholders" was borne. Did anyone actually get one ? Or was it just a press release timed to hit 15 minutes before the market opened on Thursday 4-19-01 ????

What's really bizarre is that anyone believes that placing shares in a non-margin account (or placing a GTC sell order above the market) has any effect at all.

Any market maker that is deemed to "make a market" in MSTR, ie quote a bid and ask, is allowed to short naked, without shares in inventory. Its allowed by NASDAQ, totally legal, done everyday.

In fact any investor outside of the US can do the same thing as well as US citizens with offshore accounts. Nothing illegal as long as you declare your income at tax time.

As far as the hedge funds that provided the 125 mil to MSTR ???? They'll cover with company-provided shares, not a part of the float. (Read the 10Q)

Amazing that anyone still falls for the "call-in-your shares-protect-us-from-the-evil-shorts" scam.

The only twist that would have made it even more believable would have been a self-imposed freeze on new insider sales. (of course pre-existing orders would be OK - just not mentioned.

I'll bet MSTR is in the pinks within 60 days.

Just my 2 cents.
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