SSII - Info? Message Board

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Technology Stocks : SSII - Info?

SSII 7.490

-4.6%

Nov 4 3:59 PM EST

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To: Jolie Renee who wrote (55)	5/20/1997 1:56:00 AM
From: Dale Baker	of 134

Volume yesterday was almost nonexistent so I'm not surprised SSII slipped a bit further. Looking at the average daily volume of 40,000 in the past 30 days, that means 1.2 million shares were bought in the $1 neighborhood. What we don't know is how many of those shares were sold by people who had bought at 3 or 4 and how many are short-term traders playing the game we discussed previously. But the idea is that the "new" shareholders aren't trying to cut their losses; they are looking for a nice upward surge. When that surge comes they will be sitting on the sidelines watching their investment go up or even buying more. Very few will sell at first. The trick is guessing where the short-term players will look to get out, then selling with the herd before SSII pulls back. Imagine that SSII announces a new lead underwriter (along with other miscellaneous news). The broker starts off SSII as a "buy" with a target price of 3 or 4. The small float means that anyone wanting to buy in will quickly push the price up. The only selling pressure would be the traders who bought under $1 that take a 30% or 50% gain on the upsurge. The price should go up at least a point in a day or two. This was my experience with BROC. Bought at 3 1/8 and watched the momentum take it up quickly with little selling. As soon as it doubled, the selling hit and pushed it back under 5 (where I was stopped out with a nice profit). Now BROC's supporters are buying more to keep it over 5 and thus marginable. In retrospect, I should have sold half my shares at 6 1/4 and let the rest ride. I would be tempted to do that with SSII if it reaches 2 1/4 again. Another stock in this category is GLBM. Read the thread -- it's quite good -- and make up your own mind. I like their product. Still planning to call SSII's CFO today?

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