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Strategies & Market Trends : The Amateur Traders Corner

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To: Tom Hua who wrote (3666)11/27/2000 5:16:52 PM
From: Paul Kern  Read Replies (1) of 19633
 
Quarter to quarter IBAS was spending $1.00 for every $1.00 in revenue. Then, it was $2.00 plus for every $1.00 of revenue. Assume that it grows arithmetically, not geometrically, the cash will be gone.

Any time a stocks jumps more than 25 per cent because the prez sez they aren't running out of cash right away, it looks like a short to me.

It also fit my short profile:

1) Prefer internet related.

2) Has already lost at least 60 per cent of its value and 90 per cent is better.

3) Sells between $5.00 and $15.00 a share.

4) Up on a press release, analyst upgrade, TV appearance or nothing I can find which makes me think its being pumped on one of the P&D sites.

5) It looks like a last gasp pump before it goes under for good.

None of these are hard and fast rules but they have served me well. I look for 5-15 per cent return in 2-3 days.

Paul
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