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Strategies & Market Trends : Anthony @ Equity Investigations, Dear Anthony, -- Ignore unavailable to you. Want to Upgrade?

To: Mr. Big who wrote (41882)	8/2/1999 9:10:00 AM
From: Anthony@Pacific	Read Replies (2) \| Respond to of 122087

I wouldnt be long a damn thing.....earnings or not..they are great decoys

To: Mr. Big who wrote (41882)	8/2/1999 1:24:00 PM
From: uclatrader	Respond to of 122087

option investor start QLGC as short play this week QLGC - QLogic Corp. $166.87 (+9.44)(+15.75) If time is money, then QLogic is providing eight of the ten top server manufacturers with better speed and performance than their competition. Companies like IBM, Dell, Fujitsu, Quantum, Hitachi, and others, all view QLogic as the innovator and the place to be when it comes to providing SCSI, enclosure management products, storage subsystems, and data storage peripherals. Qlogic is so innovative, that they were the ones who provided the industry with the first standard SCSI processor. Labeled as one of the "most booming young companies" of 1998 by Fortune Magazine, they are responsible for the new growth market of Fibre Channel. This is allowing them to be ranked a true leader in the electronic components and semiconductor industry. What an incredible few weeks it has been for QLGC. On July 14, the company announced a 2:1 stock split. A very bullish move considering the news was made public a day before their earnings announcement. Then they gave us the earnings surprise investors were waiting for. A $0.60/share earnings vs. the $0.49 estimate. Investors have been rewarded handsomely with this news, and have also been provided opportunities for entry due to the volatility of the stock. The price run into the stock split has been exceptionally strong, considering our market conditions; however, it is time for QLGC to rest. We believe that the post split depression will cause the stock to retreat substantially. This due mostly profit taking and catch-up to our current market. Also, the close Friday put us above the top Bollinger band on our charts. If we see a gap down Monday, the slide should be quite strong due to this formation. It can an extremely bearish signal when market conditions are negative also. This play is not for everyone. You'll have to watch the stock for an entry point Monday morning. Plus you'll need to call your broker for the correct put option symbols. Their 2:1 split is effective Monday and is bound to cause some confusion with most online quote services. The correction we are looking for could be as short as 1 or 2 days or it could last a couple of weeks. You'll need to watch it closely. Only good news to report on this stock. They are being added to the S&P MidCap 400 index, along with several brokerages upgrading the stock, in addition to what has already been mentioned. When all the good news comes at once, as it has with QLGC, it doesn't leave any excitement for after the party. We think the party is over for the short term, and puts should be our play. Due to the volatility of this stock, the fact that the trends have been strong to the upside, and there may be some Johnny come lately to the party, use extreme caution before entering. Remember, 7 out of 10 stocks go down after a split. There is a 30% chance we'll get hit on this play, but the odds are in our favor after such a strong ramp up the last two weeks. NO OPTIONS are listed. Call your broker for the new put option symbols. Average Daily Volume =424k Chart = quote.yahoo.com shuo