Anthony @ Equity Investigations, Dear Anthony, Message Board

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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony,

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To: Richard Miller who wrote (14507)	2/25/1999 2:09:00 PM
From: jjs64	Read Replies (2) of 122087

Richard; I am not short OMGA because of the relative merits of their products, rather because the company had a poorly received IPO (low institutional interest), missed their first quarter out (which means very poor visibility), has a nosebleed p/e (which gives it room on the downside), but mostly because it got run up by online traders and daytraders because it bridges the gap between "trading" and "internet" With all these foolish investors bidding up the shares of a $2 stock to the stratosphere (in P/E terms), any institutions and insiders still stuck in it will (if they are rational, and they may not be) sell, ecstatic that somebody took this dog off their hands. I think of this as a cycle: 1) Weak company 2) Weak IPO 3) Weak 1st Public Quarter 4) Stock Collapse 5) PR and then Hype 6) Stock Surges 7) Motivated Sellers Emerge 8) Stock Fades Away A good example of this transformation is Echelon (ELON). A real POS that never made a dime, barely got the IPO done, missed the first Q out, then ran up on hype...and now right back where it belongs. Anyway, thats my reasoning on shorting OMGA. Best regards!

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