This just came across on Briefing.com
10:20 ET ******
"MOMENTUM STOCKS: Several momentum issues are moving lower today following an extensive article in today's WSJ regarding Carlton Lutts and his Cabot Market Letter. Mr. Lutts is currently under investigation by the SEC for possible stock manipulation. Hence, several of the issues that have been touted by his newsletter are feeling some of this pressure as well. So far, trading activity in Iomega (IOMG 22 1/2 -4), Presstek (PRST 64 1/8 -3 7/8), JLG Industries (JLGI 68 1/2 -3 1/2) and Zoltek (ZOLT 35 -1 3/8) is very heavy among these issues as they have seen wide swings in price today. In addition, IOMG is reacting to "sell" recommendation issued by newsletter last night. Hence, these issues are likely to remain active today as investors try to assess the landscape for growth and whether some of these issues got too far ahead of their potential. To be sure, recently IOMG has come through with certain arrangements that should make their portable disk drives that much more accessible on PCs, signing deals with IBM, NEC, and Gateway 2000 to have their disk drives as part of the computer. However, given that these issues were driven up by momentum players, the air is coming out of them, prompting investors to exit in a hurry. " |
