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Non-Tech : Amati investors

AMTX 1.470

-5.8%

Dec 12 9:30 AM EST

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To: (no name provided) who wrote (8671)	1/18/1997 8:43:00 PM
From: Al Whitehead	of 31386

I believe the 10% number used in the CANSLIM theory is suggested for solid established companies that have relatively low volatility. O'Neill suggests cutting losses when price drops from original purchase price but as the stock gains momentum the % should increase. It is only to protect from a disastrous decision. If one does their homerwork and purchases stocks that are truely undervalued the 10% or whatever selected % will only occur if a company has some truely unexpected bad news. The problem with a lot of theorys is that people want to be able to plug in a hard number and not vary from it. Most theories still require a fair amount of reasonable intelligence be supplied to implementation of the theory. I totally agree stocks like AMTX should never be analyzed using can slim. In the first place the Earnings Relative Strength doesn't meet the very first requirement. When pursuing this type of stock it is necessary to determine if the industry has a place in the future, does the Company have the right product for the opportunity and does the investor have the patience to stick with that which makes sense. Fundamental Analysis has a place but some of the pieces will be missing until there is product implementation. We all need to have the courage of our convictions and frequently review the postings of many on this thread to reaffirm those convictions or question them occasionally. Pat Mudge, yourself and many others have helped me buy more at 19 & 15 and probably on Monday at 12 1/2. It has been a ride since I first bought some at 8 and watched it go to 33 or 34 and come back to here. The point is the need is there, the technology is being tested and sometimes implemented by the major players in the comm industry. There are so many allegiances with major companies it is difficult to believe there is a weakness in the basic design. Therefore we need to exercise patience occasionally add a little to our current holdings and stop panicking when our little AMTX doesn't fit the theories designed for more mature companies. Regards Al W

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