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Strategies & Market Trends : Tech Stock Options

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To: Kevin who wrote (26995)10/27/1997 10:20:00 AM
From: Tom Trader  Read Replies (2) of 58727
 
Good morning Kevin

Various sectors are getting hit really hard and reaching points which with the right strategy could be great medium/long term plays

No need to rush into any sector but look at what has happened to the semi-equipment, dd and now the HMO sector. I know how I am going to play this--I shall take positions in quality companies within each sector over the next two months. These stocks should each get battered further by a combination of the down-trends that they are in as well as the tax-loss selling that they will experience. I will take positions in the top tier companies as this occurs. For example OXHP, is a a company that I am familiar with and is a major player with a future--superbly mangaged but they have encountered a bump on the way and the stock is down over 60% from its recent high. The stock has been punished in a manner that only a very reactive street can -- and IMO, therein lies the opportunity for the individual investor with a reasonable time frame. Needless to say that this is not a quick flip--in fact from a stand-point of the flipper it should be shorted on any retracement.

Unless the overall market tanks, I am confident that this approach will result in some healthy returns over the next year or so.

Regards
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