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Technology Stocks : Red Hat Software Inc. (Nasdq-RHAT) -- Ignore unavailable to you. Want to Upgrade?

To: MadManMike who wrote (768)	8/23/1999 8:22:00 PM
From: Nelson Chang	Respond to of 1794

>>>Wow, with the NAZ up strong and RHAT down for the day, what's this thing going to do on a bad day?<<< Good question. However, as this stock is just out of its IPO, I am not as concerned for many reasons: ie. alot of people who bought at market open on IPO day still need to be flushed out of the stock, etc. Don't get me wrong though, being down on an up day is not good. However, as I have followed and traded many other IPO's, it is common for IPO's to become quiet in trading then to all of a sudden spring to life. I'm not saying it will happen to RHAT, it may not. ARBA, JNPR, RBAK all had down days on up net days much like today. I should know - I got shaken out several times from what were big runs to come because I was thinking the same thing - "this stock is weak since it's down on an up day." Then, for whatever reason, funds started to trade the things up. And like Cramer says, you don't know when or even if they will, but if they do the stock just never comes back down until they let up. And when do they let up? That's as arbitrary as when they started. Funds are still riding ARBA JNPR and RBAK to the sky. It's almost ridiculous what these funds can do. These funds are so big, that when they buy they need to buy big. And even when RBAK makes a big run, to the fund itself it maybe added a fraction of a percent to their performance. Yet a stock like RBAK goes up so many points just so the fund could be listed as owning RBAK and eke out that extra fraction of a percent in the mutual fund game. Of course they look at fundamentals and management, but when a stock like RBAK becomes a rocket ship, the funds only care about one thing. That the stock the own is going up...and so they buy more... I'll get off my soap box now. Some good discussion on the Motley Fool's msg board at boards.fool.com Stay away from the raging bull on this one. A bunch of looney posters there wasting bandwidth. They don't contribute much regardless of their position.