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Biotech / Medical : Aviron
AVIR 2.955-3.4%Nov 14 3:59 PM EST

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To: jon wilson who wrote (13)7/16/1997 8:46:00 AM
From: Stephen D. French   of 645
 
Jon - There are good reasons why this stock moved so well.

Whenever a common practice (ie. Flu vaccines, dental lasers (PLSIA),[help for the common cold ie QGLY (I don't respect the company)], the market usually reacts very well.)

When you hear of an FDA approval, major medical reference or a very favorable study reccomend a new procedure like this, do some quick but
thorough reserarch and jump on the momentum train. You need to be fast with these stocks. I was somewhat surprised how slow the market was to react. It shows the strength of the tabloids and the weakness of real time news which is very understandable.

I heard about this stock by listening to CNBC and by always monitoring the stocks from IBD's "new america" section. I saw the drop from the profit taking and when it bottomed out, then the price entry point appeared.

In general, people usually miss the initial run-up from good news on stocks, but most of the time profit taking enters the market and if you have real time charting, one can pick the bottom based on chart signs.

Watch the trend of the momentum and volume to help determine the peak.

stephen
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