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Biotech / Medical : TLC-The Laser Center (NASDAQ: LZRC) -- Ignore unavailable to you. Want to Upgrade?

To: M. St.Denis who wrote (72)	10/25/1999 7:54:00 PM
From: Cal Gary	Read Replies (1) \| Respond to of 96

Uh, er. Good question. Forensic scrutiny of the charts reveal many reasons. During the rise beginning in march, there were three (four can be argued) rising peaks on the price chart. However during the push to the $80 high, MACD clearly indicated huge distribution of stock during the last push. The divergence was a great leading indicator. This I would generalize are the people who set the foundation for the stock's advance, are getting out. Of course day traders too, but who's counting here. MACD was showing lower peaks during the drive to the top. Profit taking started the decline, next the day traders, and shorts entering. Then panicing position traders (like me), more shorts (this is where much damage takes place), then its the everyone for himself to preserve capital and way more shorts. I'd blame it on the day traders ;o) for what the profit takers and shorters (the major houses) did. Humor, humor. :o) TLC has done a complete run from 25 to 80 and back to 30. A violent run like this in a short time leaves many winners and losers in its wake. The stock needs to rebuild technically from all the damage at this point. $24-30 has to be major support, JMHO. Price drifting is part of the rebuilding going on. MACD is flattening and bottoming out. So distribution is weakening. OBV is holding and the divergence to price indicates this declines in way over done stage. Other oscillators indicate over sold. Breaking and price below all the usual moving average, trend lines don't help. Eventually the slope of these lines will flatten out. The further out MA appears to be doing this now. Correlation to the market will always be there. But the damage was done way before the most recent market weakness. The company fundamentally is still in great shape. Laser correction market is still in growth phase and a long ways from maturity. They are building the HMO relationships. The market expects TLC to do magic like it used to do when it was smaller. I mean in revenue growth, cash generation, and M&A activities. It'll be harder for them the bigger they grow. For example, an announcement to take over a mom & pop operation no longer has effect. They'll need to take over larger game to have an effect. Like the LSKs and GBVs who have 10 to 15 clinics. (Sorry I just had to name drop here). How about other opinions?