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Reminiscences of a Stock Operator
That afternoon I got some big checks that brought the cash in my possession to about
four million dollars and the promise of the rest in a day or two. It began at last to look as
though the syndicate might do something before the bull market passed away. At best it
would be no cinch, and the sooner I began work the better. The public had not been
particularly keen about new market movements in inactive stocks. But a man could do a
great deal to arouse interest in any stock with four millions in cash. It was enough to
absorb all the probable offerings. If time urged, as I had said, there was no sense in
waiting for the other two millions. The sooner the stock got up to 50 the better for the
syndicate. That was obvious.
The next morning at the opening I was surprised to see that there were unusually heavy
dealings in Consolidated Stove. As I told you before, the stock had been waterlogged for
months. The price had been pegged at 37, Jim Barnes taking good care not to let it go
any lower on account of the big bank loan at 35. But as for going any higher, he'd as
soon expect to see the Rock of Gibraltar shimmying across the Strait as to see
Consolidated Stove do any climbing on the tape.
Well, sir, this morning there was quite a demand for the stock, and the price went up to
39. In the first hour of the trading the transactions were heavier than for the whole
previous half year. It was the sensation of the day and affected bullishly the entire
market. I heard afterwards that nothing else was talked about in the customers' rooms of
the commission houses.
I didn't know what it meant, but it didn't hurt my feelings any to see Consolidated Stove
perk up. As a rule I do not have to ask about any unusual movement in any stock
because my friends on the floor brokers who do business for me, as well as personal
friends among the room traders keep me posted. They assume I'd like to know and they
telephone me any news or gossip they pick up. On this day all I heard was that there was
unmistakable inside buying in Consolidated Stove. There wasn't any washing. It was all
genuine. The purchasers took all the offerings from 37 to 39 and when importuned for
reasons or begged for a tip, flatly refused to give any. This made the wily and watchful
traders conclude that there was something doing; something big. When a stock goes up
on buying by insiders who refuse to encourage the world at large to follow suit the ticker
hounds begin to wonder aloud when the official notice will be given out.
I didn't do anything myself. I watched and wondered and kept track of the transactions.
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