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Technology Stocks : On Technology (ONTC), firewall mostly

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To: brother who wrote (1)5/13/1997 11:34:00 AM
From: T. Pascal   of 79
 
<<If you're convinced the company is a loser, sell it.>>

Well, my basis is low enough now that I'm in the black, and I don't think it can go very much lower (it's less than 1 times sales, they have at least $2 per share in cash, etc.). But, it's a loser for the following reasons:

1. It trades for less than $5
2. It's a recent IPO issue
3. They're probably going to dilute my capital with more shares (see 2)
4. Management can't seem to keep earnings regular. They bounce more than my Duncan®
5. I've never seen any company or professionals using a single one of their products

Besides, I like to make at least 2% a month on a stock, on average. If I reach that return on my ONTC, I will sell.
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