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Technology Stocks : INSS - International Network Services

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To: joemjo who wrote (106)5/15/1997 2:52:00 PM
From: Glenn D. Rudolph   of 446
 
Volatility is common, but didn't the three stocks mentioned
(COMS,CSCC,CSCO) all have flat (CSCO) or declining (COMS,CSCC)
sequential quarters? INSS met expectations consistently. In other words
were these stocks at their highs reflecting an optimistic short term
future growth which was not delivered?


Todd,

You are correct about CSCO, COMS and CSCC. However, ASND also took a bath and they had sequential growth. It is likely the street was afraid of all these companies including INSS at that point in time. INSS traded under 20 with sequential growth and hitting expectations. I see you did mention ASND. I must be tired<G>

Another way to look at it is which stock at their high had the most
unreasonable price.
INSS at 50
CSCC at 90
CSCO at 75
COMS at 82


It is my opinion that the most unreasonable prices in decending order are the following:

CSCC 90
INSS 50
COMS 82
CSCO 75

I am not certain the price on CSCO was that unreasonable. The street nailed it big time but has brought CSCO back within 15% of their high already. Not true with the others.

I'm well past being merely perplexed but you can't help but be drawn to
these stocks which are so dynamic and dripping with opportunity and
danger.


There is a lot of opportunity in selling options on these securites because the volitility keeps the premiums high. The danger is there as you mentioned but might not be that dramatic if one does not sell naked puts for a number of shares beyond what one could afford to purchase. The market will eventually take these shares back up. Just do not sell them when the security is way over priced like when CSCC was at 90.

Glenn
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