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Technology Stocks : SYNTEL (SYNT) - Upcoming Year 2000 IPO
SYNT 40.990.0%Oct 10 5:00 PM EST

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To: Raj Ramaswamy who wrote (484)12/20/1997 12:02:00 AM
From: Feraldo  Read Replies (2) of 2761
 
No way. Don't rope in crap. Wait till this stock runs for a while, then rope in someone. That's the difference between now and when stocks had good runs. It used to be in 94 and 95, a stock like SYNT would run up 100 or 200%, then one analyst would cover it with a buy. Then a little later, and an earnings report, then you'd have two. By that time you are up 200% and slap happy. Then they all start pouring on buy recommendations and upgrades. Then you get a 4 or 5 bagger. It's the whole problem with today's market. A stock moves up a point and boom five analyst say buy. Then what's left to drive a stock. They can't all say buy again. They all have to downgrade. Plust if it gets heavily coveraged in the earlier stages, everyone will know about it, and then the secret's out. Funds alone run a good company up 100% or more. Earnings run it up more. Then the analysts should just be some window dressing at the end of the run, to allow the people who really did their research at the beginning to get out while the getting is good. Take CUBE for example. Go back to a historical chart. Check 95 out. They ran from what should be 12 on that chart to like 30 on that chart just on funds and earnings. Then all the way to forty. Then an analyst or two. Then to 50. Some more analysts. Then all the way to 72. That's the window dressing and that's when you can get out. You'll never see that today, because at 30, all the analysts would say buy and the secret would be out. Then what's going to run it up. Funds don't want something that everyone already has. They want something no one has.
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