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Technology Stocks : F5 Networks, Inc. (FFIV) -- Ignore unavailable to you. Want to Upgrade?

To: Rarebird who wrote (731)	4/1/2000 8:33:00 PM
From: Czechsinthemail	Read Replies (3) \| Respond to of 1801

Rarebird: I'm new to this thread and have appreciated your posts. You suggest that FFIV's weakness is either attributable to generally undiscovered (but presumably known to insiders) bad news or an irrational reaction. Another explanation may be investors trying to reduce risk. It includes those that opt for profit-taking or cutting losses by deciding to "take the money and run". The company may have great fundamentals but a stock price that fully discounts them. Given concerns about increased competition and a reduced rate of sales growth, people may be moving to the sidelines or shifting money to companies perceived as safer and more sure bets. The fear and uncertainty surrounding FFIV coupled with its relatively small size and lack of analyst support may be sufficient to drive down the stock in the absence of buyers stepping forward to commit. Shorts and those over-extended on margin would tend to aggravate the fall. It is the way smaller and relatively unknown companies go from being oversold to ridiculously oversold. The company's fundamentals look strong, but many may not be willing to take a chance on a young company that has announced the rate of sales growth will be slowing and that competition will be increasing. Fear pours into the unknown and when the market is skittish can tend to flood it. Baird