New Economy, I just increased my over all NN position by 50% @ 27 1/8.
Sold GE to pay for it.
My thinking:
-NN held extremely well today at the open during the downdraft compared with all the other stocks on my list. It was 4 th from the top right next to the oils and oil drillers which I think are now the best place to park your money ( I like RD especially;
just watching it ).
-currently market is crashing with curbs, NN up is up 0.08% !!
indicates underlying strength in a stock, regardless of fundamentals.
-that was confirmed by the fact that my order was filled slowly: few sellers. ( read "Reminiscences of a stok operator " by Edwin Lefevre , Re the life of Jesse Livermore a trader in the 20s, a classic ).
-we are approaching end of the quarter. I bet there will be no pre-announcement this late.
-in the biggest market explosion in decades, the internet, currently there is IP+ATM written all over it in the infrastructure and NN is the leader.
-software is falling ( AOL, YHOO, eBay, DCLK, ) because of competition and multiple IPOs coming in daily.Soon you'll be able to buy them at KMart, gg. In infrastructure however you have what is called difficulty of entry. Nobody is going to develop a carrier size ATM switch the size of NNs overnight and test it with carriers. we are talking at least a 3 year lead IMHO. They'll have to buy NN.
-NN has already corrected.Market hasn't.
-always buy a stock on it's way up, an old chinese proverb.
-basic problem with NN is that they can't meet a record backlog. Any company would love to have that problem.
TA
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