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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: wgh613 who wrote (98460)	5/19/2000 10:11:00 AM
From: Lane Hall-Witt	Respond to of 120523

wgh613 -- A: I've been considering whether to enter, also. I like the company a lot. However, the distribution of HWP's shares (coming soon) is a significant risk factor right now, in my opinion. This distribution likely won't hurt the stock too terribly if A is indeed included in the S&P 500, as the Goldman Sachs analyst speculated recently. But if A is not included in the index, then A should see significant downside pressure: the index funds hold HWP and would have to sell the shares of A that they receive in the spinoff if A is not added to the index. That would be a large number of shares all coming to market at exactly the same time. The companies, bankers, and specialists would doubtless try to smooth out the situation by negotiating "fair-price" sales off market, but this still would exert pressure in the market.

To: wgh613 who wrote (98460)	5/19/2000 10:17:00 AM
From: lee kramer	Read Replies (2) \| Respond to of 120523

wgh613: I understand your comment about "upgrades". As to A, are you a trader who can take some risk? enter a stop and take the loss if you're wrong? I'm wrong a lot, but I gotta tell you...my stops have protected me well these past few months. I won't try to buy A. I might miss a few points if it rallies a bit...but that's just me. I have a handful of stocks I watch, try to get a "feel" for. A is not one of them. If you don't have a strong feeling about this trade, or any other, don't make the trade. (Lee)