Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Politics : Idea Of The Day -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (30482)	1/19/2000 4:23:00 AM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

America-iNvest.com: What?s going on today? Fredrickson: It?s a volatile market. That has been the story for what seems like eons now. America-iNvest.com: Are there any sectors where the volatility can be taken advantage of? Fredrickson: Biotechs have been great lately. Right after new year?s, they got hammered as a group and we began investing in Biotech Holders Trust (BBH). We bought some on Jan. 5 at 135 and sold it on Jan. 10 at 160. We bought it again on Jan. 13 at 150 and sold it the next day at 155. So it has been a pretty good thing. We?ve been in a lot of biotechs lately; they had some pretty nice setups. America-iNvest.com: What defines a nice setup in your mind? Fredrickson: Most of them were in a very nice uptrend, with a three- to five-day pullback before touching a trend line or moving average or price support. America-iNvest.com: What?s a biotech name than has been good to you? Fredrickson: Viropharma (VPHM) has been great. I invested in it when it was at 14, maybe six months ago. It gapped up to 90 this morning in pre-market trading. I became interested in it because the company was really close to some kind of flu drug. I looked into it, and they were further along than anybody else. America-iNvest.com: What other sectors do you like? Fredrickson: Cheap stocks. Anything under $10. Seriously, cheap stocks have kind of become their own sector for whatever reason. One that we played the other day is Information Architects Corp. (IARC). We got in at 10 7/8 and got out at the close at 15 1/8. If a stock has its biggest one-day upside move ever or even its biggest move in the last month, it will tend to attract some selling the next day. Sometimes it is some pretty strong selling, so we usually sell ourselves before the rest of it begins. America-iNvest.com: Why do you think cheap stocks have become so popular, especially among day traders? Fredrickson: Not everybody has a big account. There is a group of people who can?t afford anything over say 15, plus another group that is keyed into these stocks. That creates some rabid buyers. When you combine that with the market makers not making markets, it is ridiculous. It is insane that you can go in and buy 3,000 shares of a stock and move its price up $2. America-iNvest.com: Do you have any specific strategies for earnings season? Fredrickson: We made 20 points on Ariba (ARBA) and 15 or 20 on Yahoo.com (YHOO) after they reported. What we do is look for a stock that comes out and beats earnings after the close or before the open. The next morning, if it breaks its five-minute low, then we will short it. The premise is that it should be going up because it beat earnings, and a lot of people have bought it. But if it does go down, people start to panic. Usually we want to be out of it by 10:15 a.m. market time, because that?s when it usually starts to reverse. It is a quick trade, but you can make some bucks. America-iNvest.com: Anything else you?d like to add? Fredrickson: We?re hosting a free all-day online seminar at noon EST on Jan. 29 that will help teach traders improve their day trading. I will be one of the presenters. More information is available at swingtrader.net.

To: IQBAL LATIF who wrote (30482)	1/19/2000 5:47:00 PM
From: IQBAL LATIF	Read Replies (1) \| Respond to of 50167

My morning post and earnings after the bell....as IBM AAPL AOL and even (pork bellies) AMD beats and tops. I cannot but highlight what seemed the core of our strategy here at ideas..<<No one has ever beaten the earnings game here this is a market whose octane is earnings you can ignore these earnings but at a certain supports buyers jump in big.. >> -- America Online shares gained in the evening session Wednesday after the world's largest Internet provider said that second-quarter fiscal revenue leaped 41 percent to $1.6 billion, which carried it slightly past Wall Street's profit expectations. Apple topped analysts' earnings projections <<, I will not be aggressively short for simple reason if bond is rallying why RUT is ignoring... it is this sector that should have been the hardest hit. No one has ever beaten the earnings game here this is a market whose octane is earnings you can ignore these earnings but at a certain supports buyers jump in big.. Bond yield heading north in a rising inflationary environment is understandable but in a low inflation environment to knock out asset prices it is not a smart tool by the traditional smart bond market, they are providing an automatic hedge, I can be long in the options market and playing the put side on the price on the bonds, I know it when market will fall the bonds will provide me the hedge, so where is the risk, that alone tells me that the rising bond yields are being used by astute market players to play the downside, >> AOL, which said it'll acquire Time Warner (TWX: news, msgs) last week, made $224 million, or 9 cents a share. It was expected to earn 8 cents a share, according to a First Call survey of 32 analysts. The stock gained 2 13/16 to 64 1/16 in the regular hours, and moved to 66 on Instinet. See related story. Apple topped analysts' earnings projections by a dime, buoyed by continuing strong sales of its flashy IMac and IBook computers. The PC maker said it earned $178 million, or $1 a share, minus non-recurring items. Wall Street expected the Cupertino, Calif.-based Apple (AAPL: news, msgs) to report first quarter earnings per share of 90 cents. Shares of Apple gained 2 5/8 to 106 9/16, ahead of the news. In the evening session, shares changed hands at 111. See related story. IBM said revenue dropped 4 percent, but the world's largest computer maker beat analysts' lowered expectations. Big Blue's net income fell 9.5 percent to $2.1 billion, or $1.12 a diluted share. That compares to the a consensus estimate of $1.06. IBM (IBM: news, msgs) shares rose to 118 in after-hours trading after closing at 115 1/2. See related story. I2 continued higher in after hours after the company handily topped analysts' expectations. I2 earned 19 cents per share, up from 5 cents in the same quarter last year. Analysts surveyed by First Call expected earnings of 16 cents per share. Sales at the software company (ITWO: news, msgs) rose 54 percent to $175.2 million. The stock gained 13 percent to 215 in the regular session and moved to 222 on Island. Visx said after the bell that it earned $25.8 million, or 38 cents per share, up from $17.2 million, or 26 cents, in the same period last year. That was in line with First Call estimates. Sales at the laser company (VISX: news, msgs) rose 79 percent to $75.1 million. The stock closed off 1 3/8 at 45 3/8 and held that level after hours. Alteon WebSystems (ATON: news, msgs) posted a narrower-than-expected loss of $4 million, or 11 cents a share, in the fiscal second quarter. Analysts had forecast a loss of 13 cents. Revenue increased 161 percent to $17.1 million. Alteon makes products to speed up the services that feed data into networks and Web sites. Shares closed up 2 7/16 at 92 7/8 and held that level after hours. Micromuse (MUSE: news, msgs) shares rose on Island after company set a 2-for-1 stock split and posted better-than-expected earnings. The San Francisco-based company earned of $2.5 million, or 13 cents a share. That beat the consensus estimate by a penny. In the year-ago quarter, the management software provider earned $1.3 million, or 8 cents. Shares closed up 3 11/16 at 170 11/16 but moved to 180 on Island