25% gain in days-PSDI,IDXX,MCSY,ODP,RATL,WGTI Message Board

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Strategies & Market Trends : 25% gain in days-PSDI,IDXX,MCSY,ODP,RATL,WGTI

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To: Chi-X who wrote (20)	5/29/1997 6:33:00 PM
From: Chi-X	of 24

WDC will split Tuesday, June 3, 1997 next week. There is something called the split phenomenon. It's where stocks that split usually run up higher than their pre-split price. As the stock gets shaved in half, it "looks" cheap and attempts to make somewhat of an adjustment to its old price as it runs up. The Investors Business Daily Free tape speaks of this split phenomenon as a tip on buying stocks. Some professional investors buy splitting stocks since the percentage of making a profit is so high. The odds are in favor of a runup, but be aware that it doesn't happen all of the time, just most of the time. Timing is also important. Technical Analysis would indicate that WDC is currently in a buy area with the base of support being around $52 1/2. It sold off on fears of a possible SEG conference call warning but there was no conference call. Maybe there will be a bounce here or else WDC may fall to test the support at $52 if there is further weakness in the techs tomorrow. Cheers, Chi-X has Spoken! CEO Chi International members.aol.com

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