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Strategies & Market Trends : Technical analysis for shorts & longs
SPY 694.04+0.7%Jan 9 4:00 PM EST

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To: j g cordes who wrote (16932)7/6/1998 6:07:00 AM
From: Johnny Canuck  Read Replies (6) of 69661
 
Jim,

Belated Happy Birthday to you !!!

Here I throw a big party for you in Ottawa, Canada's capital,
with fireworks and 200,000 guest and you don't even show up. <g>

I hope your significant other took you out and you indulged in your,
my and Thomas's fatal passion.

>>if the programable chip area has been stronger than most
>>then would the embedded software companies be worth a shot?

The industry is pretty fragmented. Despite the interest
in real time operating system a lot of the work is still
done in plain old assembly language, especially for the
segment that MCHP deals in. The basic software tools are usually
given away at cost or below in order to get design wins.
MCHP sells a basic assembler, simulator and programmer
for their chips for $199 US if you go to one their seminars.
You can buy after market stuff but you don't have too.
I don't know of any software vendors in this market
segment that would be worth looking at.

Companies like INTS, RSYS and WIND are directed at a
totally different market.

>>COMS said good things in their meetings according to news flash.

I am not so sure.

briefing.com

>>3Com relief rally (in response to an as expected earnings report)
>>running out of gas, as stock fell back below 30... Stock's
>>inability to follow through on gains is evidence that street
>>remains concerned over prospects for sales and earnings
>>growth in the increasingly competitive
>> environment... Takeover talk has died down a lot,
>>as a couple of weeks have passed without a
>> deal...

I am more incline to be cautious and give some weight to
the analyst's theory that COMS was the telecommunications
company that cancelled their order with JBL..

Interestingly, the McClellan Oscillator is at 109. It has not
been this high since before we corrected earlier in the year.
The EPC looks fine though. As Clint mentioned people
are inclined to buy the high flyer with no earnings again
so the market internals appear ok. New high on the SP is good.
Overbought signal on the utilities is not. It is a pretty mixed
bag. It should make for a volatile few weeks as earnings are
released.



Have a good week.

Harry
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