99 RS stocks--WATCH THEM FLY HIGHER AND HIGHER Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 99 RS stocks--WATCH THEM FLY HIGHER AND HIGHER

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: freelyhovering who wrote (470)	11/15/1997 9:38:00 AM
From: David Lee Smith	Read Replies (3) of 836

Myron, As you know I resigned from my job at ComVest Partners primarily because I did not want to hang around stock manipulators and traders of inside information. I bring this up in the light of HZP which I know to be a manipulated stock. This stock will do lucky to earn $0.35 per share this year and $0.60 next. True, that's a great growth rate, but I feel the risk of earnings dissappointment for any given quarter is very great. Assuming a 20X PE one gets a $7 stock and that's about where I believe it's worth. The question this brings up do many of the 99ers that seem to defy gravity really manipulated stocks where only a few investors control the price of the stocks. An interesting study would be to see if some of the micro cap 99ers have common market makers and common shareholders. Of course those larger stocks with heavy volume can probably be excluded for this idea. But what if a pattern does truly exist. Then you've not only developed a great tool that the NASD and SEC could use to prosecute these individuals, but you could develope an almost sure-fire, legal way to identify great shorts. When will HZP become a short? Well, probably after the one or more of the following events: 1. A major player in the stock sells ( creating a mini crash) 2. The primary market maker abandonds support.(note even a listed stock like HZP that has a specialist still has a primary market maker that will support the stock at levels it want to do so. In HZP's case it's ComVest Partners, Inc. in Dallas, Texas) 3. The stock manipulators or the primary market maker come under investigation by the SEC or NASD. A manipulated stock will have a 99 RS and earnings may never materialize. All that's required is usually a good "story" and a group who colludes. I'm sure there are legitimate micro cap stocks out there, but most serious institutional investors will sell even the most sexy micro cap with a growth rate of over 50% at 20X earnings. My advice for purchasing would be to look for micro cap 99's with a PE of under 10X with a solid business and prospects for very rapid growth. Otherwise, consider shorting these puppies when the PE gets excessive (over 20X) and a mini-crash occurs in the stock. Trying to ride these stocks by purchasing them on a "correction" seems foolish. Best wishes, David

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next