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Technology Stocks : Consolidated Graphics (cogi)

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To: Jonathan Cleveland who wrote (16)1/12/1997 10:14:00 AM
From: DAVID BROWN   of 29
 
JC, here is the latest post from a guy that follows COGI real close on Motley Fool. He did a great job in predicting COGI's stock price climb:

My best estimate is the company will have a strong quarter.
Why has stock been weak?
Well, first Vinik unwound over half his position. Second the tax axe cuts both ways. Any one wanting to take profits after the double in 1996, would prefer to wait until the first of Jan in order to avoid having to pay the taxes this april.
I strongly doubt it had anything to do with the company specifics.
Finally, its natural for any stock to take a breather after such a spectaular run.
Its a good time for a gut check. Why are you in this stock? If the answer is a short trade then it may or may not be a good idea. Certainly I expect a strong quarter, but I also suspect this is already discounted.
If you are in it for a longer term play, I think this is a good idea. It should deliver a clear increase in value as it continues to drive its acquisition story, Hang, Tough, this is a long term keeper.
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