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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: Ron Dior who wrote (20214)4/10/2000 2:41:00 PM
From: Greg h2o  Read Replies (1) of 42804
 
hey john...missed most of today. but in response to your question, first, the market IS the public... and, i'm not certain it takes much manipulation for the public to pull the trigger on stocks they're up 10-fold and put the proceeds into more mundane positions, such as financials. many investors have amassed enough wealth over the last 10 years that they're in a position where they need not take as much risk as they had been taking... so, why not take profits and look at investments not nearly as volatile as an MRV or JNPR?

true, brokerage firms really enjoy this kind of rotation from "new" to "old", back to "new" and then returning to "old". that's where their commissions are generated. but how much of the recent capitulation was due simply to human greed and the average investor? for example, margin accounts... the same "investors" that are greedy enough to use margin accounts (john excluded <g>) are typically the same that don't have the cash to bail themselves out of the margin call and are forced to sell... if they don't sell on the margin call, at some point they succomb to the fear of watching their equity line of credit dry up b/c they're using it to cover their margins. at the bottom, they sell.

some of these tech stocks have had healthy corrections, but there's going to be a struggle for cash flow over the next couple of months... i'd say have enough "old economy" stocks to cushion the turmoil....
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