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Technology Stocks : Shiva

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To: K. Law who wrote (9)4/3/1996 7:27:00 AM
From: Michael O'Hara Garcia   of 5036
 
I think that they might not be doing as well as they say they are. My reasons are several: Lots of new players in the market, they have been struggleing with their new acquisition Spyder systems, they recently named a new service chief because I believe their service is lagging (personal experience only), their equipment is somewhat limited compared to other systems that are cheaper: Penril (PNRL) sells a superior product for $1500 less than SHVA - PNRL sells for about $6.50/share.

Unfortunately, Shiva does not have options, or I would buy the puts as well. Watch the action today. I hope to see SHVA go up to 104 or so before the turn around because I have a long position at $97. There IS possibility that they will turn around and dive back to $95 or lower today and squeeze me on the straddle. They did demonstrate some good volume on the upside yesterday, so I think the odds are in my favor for the stock to go up, but.....

Good Luck
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