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Technology Stocks : USRX

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To: damniseedemons who wrote (12701)2/22/1997 7:35:00 PM
From: Fred Fahmy   of 18024
 
Sal,

<<Everyone knows that x2 will ship pretty soon, so it's no secret. Because of that, an x2 shipment (as in, you will be able to buy it at the store) in the next week or so is already priced into the stock.>>

How can this be built into the stock? USRX is trading lower than it was before ANYONE ever mentioned 56k. The only thing built into the price is a lot of uncertainty which is what has put downward pressure on the price. Your argument may possibly have made sense if USRX has been rising in anticipation of the release, but it has not. Also, even if products are known to be just around the corner there are dozens of examples of stocks poping nicely when the date finally arrives and the formal announcement is made. CYRX is the most recent example. It jumped 18% the day they announced their latest chip and this announcement had been anticpated for sometime.

FF
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