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Technology Stocks : Computron (CTRN)

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To: Robin who wrote (27)1/19/1997 4:12:00 AM
From: Gary105   of 70
 
Robin, Re gaps:

1. My experience is that they are filled more often than not a quick fill and a bounce (as in the case of ctrn) is a better sign than a gap that is not filled quickly (assuming the gap is below the current stock price).

2. I posted a question about gaps - and the response of traders was that many gaps are not filled esp. older ones.

3. Re. madgf - a lot of gaps to be filled above current levels but I worry about the gap at 9+ - will it be filled when earnings are released (similar to last quarter).

4. Re intc - logic tells me gap will not be filled (strong co. strong earnings). However I still worry about it - I rate probability low but measurable (25%). What can cause it - blow off in market, followed by Fed tightening, followed by meltdown, or major problem with one its fab plants (these a billion $ facilities).

5. One of the ways I've made $ on gaps is to short high flyers - I do this infrequently. The best time is the summer - look for a stock with a gap well below current prices, a very high P/E, with high expectations and a chart that looks like its topping. All it takes is an earnings report that only meets expectations - and poof! This past summer I did it with Shiva.

Gary
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