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Technology Stocks : AULT: The unnoticed superstar

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To: BUE, R.C. who wrote (186)8/29/1997 6:28:00 PM
From: HeyRainier   of 369
 
Bob, be concerned when you do not get your phone calls returned. The AULT situation looks very much like a situation I faced a few months back with Checkmate Electronics(CMEL). A stock I otherwise thought had great fundamentals unexplainably took a trip south, and I made the mistake of doubling up...all during a frantic period where I was repeatedly calling the company for fundamental developments that were possibly adversely affecting the near term situation for the company. Finally, on a Friday, they returned my call(after ignoring me for about three days), saying that a statement would be released after the market close. The statement indicated that they would not meet estimates, and the stock tanked.

This event marked the beginning of the seriousness with which I heeded technical analysis. That sell-off on high volume on AULT was no fluke--somebody saw something and decided that unloading at a cost of 3/4 per share seemed much better than what they would get in the future. Remember, Wall Street is a discounting mechanism, and yesterday's action just might signal a fundamental development that only a few shareholders are aware of.

Regards,

Rainier
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