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Microcap & Penny Stocks : MECHANICAL TECHNOLOGY (MKTY) -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (486)	1/7/2000 10:35:00 PM
From: Sr K	Read Replies (1) \| Respond to of 542

The money is still to be made playing PLUG From the short side. The reason for the implied discount for MKTY is that PLUG got plugged by an idiot [IMO] [but he really is]. Example from Jon Markman's article "SuperModels Could these 3 stocks soar 10,000% in 10 years?": There's little doubt, at least, that the absolute numerical value of the Nasdaq Combined Composite Index ($COMPX) should cross over the Dow Jones Industrial Average ($INDU) before mid-decade, as well-run technology companies grow quickly past their industrial brethren. If the DJIA goes up 10% for 5 years, the Nasdaq CCI would have to go up about 35% per year. Surrre. There are other holes in his methodology. Such as subsequent offerings, and other issuances of securities. Look at successful companies over the recent decade, and compare the growth in market cap to the growth in price per share. You could use GNET as an example. They had fewer than 4.6 million shares outstanding when they bought Silicon Investor. The market cap @ $28 was $128 m or so. Today it is more like 3.4 B counting the shares issuable from the convertible preferred. So the market cap is 26 times what it was when the Dryers did their deal. But the stock price is less than 12 times (nothing to sneeze at, but it is less than half of the market cap growth). Even from the IPO at $9, the market growth of GNET is 36 times while the market cap growth is about 84 times, again more than twice as much. And, his method is to "back test" and if you don't read all his words, you get the idea that his portfolio selection is something to duplicate (he does also say that he is just trying to get you used to using Microsoft's Investor screening facility). Meanwhile, for 2000, not only are all 4 of his portfolios down, ... all 20 of his stocks are down, from Emulex EMLX down 33.15% to Siebel SIEB down 2.11% (good for him, it was up 15 3/16 today!). moneycentral.msn.com For investors who flocked to PLUG because of Markman's article and unearned authority from being given prominence by MS Investor, I think the next few trading days will be on the downside.