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Technology Stocks : Stratasys (SSYS)
SSYS 9.450-4.0%3:59 PM EST

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To: John Kratus who wrote (98)3/25/1997 8:01:00 AM
From: Stratajema   of 316
 
John. I looked everywhere including SEC filings, news, competitor announcements etc and could not find any direct reason for the quick sell-off. However, the intraday chart reveals a succession of 1000 share dumps at the bid price which brought the share price down quickly. In the absence of news, I would speculate this activity is short sellers trading at a weak point. This type of activity should be expected with this stock, in fact I make a living off of this volatility. However, as I mentioned before, I only play this stock one way. <G>

I would also speculate that traders shorting this stock or investors selling are aware that this will likely be a "weak" quarter for Stratasys' sales. Also, the company has previously announced that they will be making significant investments in R&D in the first two quarters. And of course, this investment will have an effect on the bottom line.

The small cap market has tanked severely. This situation will draw aggressive support away from this stock in the absence of "fantastic" news. (However, I think their 4th quarter sales/earnings performance was fantastic.) I'm looking for a re-entry point into this stock and as you know the price can change in a heartbeat.

Here is a link to another opinion on Stratasys.

204.141.224.192:80/magic25/ssys/

-David
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