On the origins of the recent rally:
<<Day Traders On-line Subscribers Hit Big on Rambus, Pairgain, Cisco And Other Tech Stocks This Week
MONTEREY, Calif.--(BUSINESS WIRE)--June 24, 1998--Subscribers to Day Traders On-line (http://www.daytraders.com), one of the Internet's largest trading sites, hit big Tuesday on Rambus, Inc. shares (NASDAQ:RMBS - news) when the stock rallied over 11 points.
On June 22nd, members of the Trading Desk (a real time news and stock alert service which is provided to members via the web) were alerted to consider the purchase of Rambus, Inc. shares at $44. In the past, traders using the service had actually shorted Rambus shares for gains in excess of 20 points, but on Monday the 22nd it looked like it was time to go long. After the alert to buy, members entered the stock at prices ranging from $44 to $45 a share. The stock closed the day at $46.50 with members in the money, but that was only the start.
Tuesday Rambus, Inc. shares climbed over $11 to as high as $59.50 a share before backing off slightly at the close; allowing members to realize gains of up to 15 points intraday, or an over 30 percent return in just several days of trading.
Yet, Day Traders On-line is not just bullish on Rambus this week, they were also recommending several other tech stocks as well. In fact, in a recent edition of their morning stock market newsletter (a popular market report which is e-mailed to as many as 8,000 members and trial members each morning), the service suggested that money could flow back into the battered down and beaten up tech sector.
With this idea in mind, senior market editor Ray Johns had recommend members position themselves in such stocks as Cisco Systems (NASDAQ:CSCO - news), Pairgain Technologies (NASDAQ:PAIR - news) and Jabil Circuits, Inc. (NYSE:JBL - news), not to mention a slightly higher risk call to buy shares of Informix Corp (NASDAQ:IFMX - news).
As of the close of trading on Tuesday, those positions had returned gains of between 6 and 7 percent each in just a matter of days. Cisco Systems, specifically, was up 5 dollars from the original call to buy the stock at $81.875 a share on the 19th of June, while Pairgain yielded members over 18 percent in just two days. Other recent
recommendations included positions in both Dell Computer (NASDAQ:DELL - news) and Intel (NASDAQ:INTC - news) shares at prices of $81 and $67.375 respectively. >> |
