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Technology Stocks : CustomTracks Corporation (CUST)

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To: Mike M who wrote (1731)7/31/1999 9:05:00 PM
From: J.Y. Wang  Read Replies (1) of 2514
 
You must have balls of titanium to be able to say with a straight face that for 5,000 shares of CUST stock is significant for someone like Cook relative to his current holdings in stocks and options. Are you a used car dealer or something? That '72 Dodge missing two wheels and three pistons will drive smoothly, right?

We did the calculations to show you why 5,000 shares is insignificant for Cook. Perhaps the technique we used -- simple math -- was slightly too complicated for you. Do you prefer us to illustrate again using fingers or marbles?

The bottom line is that 5,000 shares of CUST for Cook is *NOTHING*. There are a couple of legitimate reasons why he bought it: 1) He wanted to pump the stock; 2) He sincerely believes that CUST will have 50 million customers very soon (or whatever the ridiculous number is) and truly thinks adding 5,000 shares to his holdings is going to significantly affect his net worth if CUST jumps up.

Reason #1 is bad for longs in the long run for obvious reasons. Reason #2 is bad for longs because it shows that the guy running CUST has not mastered junior high algebra yet or faces serious challenges with the logic circuits upstairs.

You pick the reason, Mike.
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