IDTI - an IC Play on Growth Markets Message Board

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Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

0.0%

Mar 29 5:00 PM EST

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To: AJBurl who wrote (8791)	6/8/1998 12:40:00 PM
From: Rob S.	Read Replies (1) of 11555

I agree with the bulk of the opinions in this article. The chip stocks (SOX & CBOE indexes) as a group are now trading near the lows of the past 18 months. Could they go lower? Sure they can, but this level is certain to draw in some bargain hunting. Market tops are often seen when good news fails to extend a move up Remember when IDT announced the deal with IBM? Despite this and other "good news" announcements, the stock (at around 15) and failed to rally. The reverse tends to be true when a market for a stock or sector has bottomed. Recently the "bad news" that Motorola would incur a sharp downturn in business and profits was largely ignored and the focus was placed on their action to cut expenses (some analysts remarked that it was long overdue) - the stock was up on the day of the announcement. I am looking at these signs for indications of the reversal. I think we may get a narrow late spring rally or spring back from the crushing downturn. Then we may be in for some more damage because of weak earnings reports for this quarter. So, the thing to watch is how the market reacts to the string of earnings announcements. If corporate heads tell the analysts that although things are lousy for the short-term that expectations for the fall/winter have improved or come into better focus (greater "visibility"). The seasonality factor is in full play this year and the emotional tech sector is swinging wildly - a great time to be on top of the volatility. It's not too early to buy on major sell-offs or at least take short rides during rallies.

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