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Technology Stocks : Stratasys (SSYS)
SSYS 9.870-6.8%3:59 PM EST

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To: Zack Zaccagnini who wrote (167)8/20/1997 2:16:00 PM
From: Stratajema   of 316
 
Zack. Based on the statements in their 10Q filing, I think there is obviously good reason for the further decline in the stock price. However, management does deserve credit for being very open about the challenges facing the company. Other small companies I follow have not been as open.

I don't want to give you trading advice since the ball is in Stratasys' court to show us whether there is going to be substantial growth prospects (within expectations) for their products over the next 6 months. We won't begin to know if the challenges they face have been corrected until next quarter's results and it's possible there will be a lot of selling on fear in late September. If you hold this stock you are betting that management can contain and correct the problems. I believe management has a handle on the issues.

Remember, this is a manic market and stock prices have a way of recovering quickly. The fundamentals driving Stratasys' stock price are their rate of growth in sales, high gross margins and niche market opportunity. A hick-up in any of these areas (as we saw with sales last quarter) will effect the stock price considerably. The technicals driving their stock price are the shorters and I think we'll see an increase in the short interest this month. I tend to be a short-term trader and so my goals for buying and selling are bound to be different than the long-term buy and hold investor.

Good luck with your decision. You may want to further review their 10Q filing before making your decision.

I am leaving SI to focus on other areas of interest outside of trading, so I wish you all a hearty good-bye and best of luck with your trades.

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