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Technology Stocks : Rambus (RMBS) - Eagle or Penguin
RMBS 87.20-3.3%3:59 PM EST

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To: Loren who wrote (1370)8/20/1997 2:40:00 PM
From: Jeff Jordan   of 93625
 
They must have a reason....but 9000 shares X 5pts is $45K That doesn't seem like a bad return on $720K for one day? But they didn't buy at 75 at yesterdays downturn. Today they are looking at a potential short term loss? If the momentum doesn't continue? Anyone with that kind of money to invest doesn't continually buy at the top? Perhaps,they have been buying at that volume for several months? With that large of an investment I would expect they have a very long term perspective?

I just picked that trade as an example....I saw lots of them that size this morning....to me anything over 2000 shares is a very large investment. Who is to say this was an individual. With 100/10,000 shares the risk vs return seems a very narrow margin at this level of entry.
Its a strategy I don't understand? The debate on this stock earlier has been; what is its value, what is its future earnings, what share of the market will Rambus demand? When do we sell, What is a reasonable price. We have seen euphoria on Rambus rise to a stock price of $85 for no apparent reason. Stocks prices do not grow on enthusiasm.(very long) When does it stop? When does reality take effect? Rambus, has agreeably amazed everyone! When, do the waves hit the beach?
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