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Technology Stocks : NASI (North American Scientific, Inc.

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To: Bob Davis who wrote (651)5/1/2000 9:40:00 AM
From: Wayners  Read Replies (2) of 658
 
then you also believe that a change in NASI's market price is the result of some change within the company's business, which has changed the value of the business.

Nope. I believe that either the supply or the demand for shares at that point in time has changed--and that change in supply or demand for shares can be completely unrelated to the company. Usually its the result of changes in supply or demand for an index or sector composite.

So, if the market correctly valued the Company on both of those dates, then something must have changed within the Company's business that caused it to lose $50 million in value during the first half of April..But nothing seems to have happened that would cause this...

You better recheck what the Nasdaq Composite did in April. Company valuations are definitely tied to the overall market. If your model does not take this into account--your model is flawed.
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