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Technology Stocks : Data Dimensions
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To: Sondo who wrote (1652)6/3/1997 10:57:00 PM
From: Bill Wexler   of 4571
 
Why do you feel I'm wrong?


I'm taking a look at a longer-term chart and it seems that we are on the "decay" side of a huge spike in volume which suggests that small speculators have rushed in and some early-short sellers have been squeezed.

The company's fundamentals simply don't jibe with the stock price. The company is trading at an enormous premium compared to other small consulting firms. The Y2K hype is starting (finally!) to meet with some skepticism, and there are no large institutional buyers coming in. Finally, it is clear that the company has pulled a "Zitel" by announcing some hypeware and splitting the stock for the sole purpose of enticing small investors to lose their money.

I have no doubt that a few lucky people will walk out with a nice chunk of change by playing the momentum side on the way up; however, it will come at the expense of the "buy and hold" types who were deceived by the hype and will open their Barrons one weekend to see DDIMs price in the single digits.

I also haven't seen anyone address why the insiders would be selling such a huge percentage of the float if they truly believed that current stock price was cheap relative to their real growth rate. After all, if the Y2K doomsday apocalypse is in 940 days, Can't they hang on for - let's say another 6 months - and reap even more enormous profits?

if you could address these issues...I'd appreciate it. Simply telling me I'm "wrong" doesn't quite do it for me.
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