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Technology Stocks : Full Disclosure Trading

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To: Gottfried who wrote (6617)	8/7/2003 6:19:22 PM
From: Sam Citron	Read Replies (1) of 13403

OT ** If it rarely pays to ST buy on the day of a large drop in price, then it must be true that it usually pays to ST sell on such days. Right now, there is an ongoing case study in XMSR, whose shares have dropped 20% today. Bulls, including Merrill Lynch, say that investors are overreacting to concerns about insurance recovery for a Boeing 702 satellite whose solar arrays are degrading at a rate higher than expected. Although I have not heard it expressed in any thread, I think the bear case may be that if such satellite anomolies persist XMSR will need to launch more birds (and spares) more frequently and this will be an ongoing source of cost increases in the future as the nascent satellite industry struggles to achieve breakeven status on a cashflow basis. Already XMSR has had to increase depreciation expenses for its satellites as it has decreased their expected life from 17.5 years to 6.75 years. I'd be interested in hearing other traders' experiences with trading stock on the day of a large drop in price. Is it worthwhile or not? Sam

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