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Technology Stocks : XeTel

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To: TI2, TechInvestorToo who wrote (110)1/2/2002 5:24:36 PM
From: Toby Zidle  Read Replies (1) of 118
 
I'm not really still here, TI2, but your posting ended up in my mailbox, so I'll comment on it. The XTEL chart shows a LONG-term downtrend. Couple that with the general high-tech malaise, a probable profit squeeze, and significant chance of lower than expected revenue/profit figures and you get the picture of a very speculative stock. Speculation is enhanced because very few investors have heard of XTEL, so the lesser volume leads to greater volatility.

Were you foolish to buy XTEL? Not necessarily.

How big a piece did you buy and what's your pain threshold for a loss? The way the chart has deteriorated, I doubt that 44 cents is a floor.

XTEL could well hit $5 when tech stocks recover again (late 2002, I believe). But before it hits $5 it may well hit $0.22. How deep are your pockets? I think they'll be tested first.
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