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Technology Stocks : Unitrode - UTR

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To: Andrew who wrote (21)	8/6/1997 7:50:00 PM
From: The Jedi	of 50

You obviusoly are clueless as to what is going on in the market. Most of the time the market will do what you least expect to. You seem to refer to valuations and financial reality. I don't know what they mean. If you are refering to financials of the company then all I can say I don't know what they are and I don't care. I am only in it for the ride. Most people think that the behaviour of a stock has to do with what the company earns and will do in the future, and use financial ratios such as those published in Value Line. But the stock movement has to do with how large is the cap and how many MM (market makers) are there. MM would like to believe and keep the price of the stocks within the publicized "financial reality". It is their job and livelihood. As for the company and its officers they have no control over the price. They can only provide good or bad earnings, and forward looking statements. And MM will decide how to react. Some stocks even with bad news go up e.g ASND others go down e.g NOKA and people say it was sell on the news. Yeah right. Most stocks that are moving higher have bizzare PE ratios and financials and defy logic e.g DELL keep doubling after every split. That is the kind of stock people love to have, and believe me the MM will keep em happy. One day when MM decide to leave this stock you can bet the PE will be below reality. There are so many stocks with PE below reality and you won't find me there . As for the 3:1 ratio I did not pick it and yes you have misunderstood. I was given the ratio and based on that I projected a split price of 90. In a different post I was told it is 2:1 so I poject between 70 and 80, based on the fact that it was basing between 24 and 32 before June of last year. Go look up the chart before you tell me it was not basing. It is simple math not TA. If one has to keep the public interested in any stock, splits is the way to go. Look at most 3:1 split stocks and you will find that they will usually split at a level 3 times the basing in the last 2 years (the basing does not have to be at the time of announcement. The stock has already moved on the expectation) So a 2:1 would put it between 70 and 80 roughly. It is 5 points away from 70, when it reaches there I will be out, you can keep the stock and enjoy the financial reality. I really don't care that my reasoning seems far fetched, it is based on what happens in the market not some percieved financial reality. I just want to make my money and move on to the next investment idea. This is the longest post I think I ever wrote. I don't have the time and the energy to argue. I just put my ideas down. If you don't like em don't worry about them. Just move along. I am sure there are a lot of us on SI that seem far fetched to some of the others. There was a very good article in June or July of 96 maybe your local library carries Forbes. You should read it. It tells what reality is. I don't have the referance off hand. It had to do with NASD Level II as this is all that I remember Kiri

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