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.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Return to Sender who wrote (27652)	8/21/2000 4:06:29 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68330

Hi RTS, GSLI looks like it is reacting to the move in IIVI. They tanked last Q due to a EPS miss. The miss was due to product mix and warranty issues which effected gross margins. Management said it was a on time issue. Most of the move in GSLI was due to its optical component business, but it is a small part of revenue. From a fundamental point of view, GSLI is worth $26.00 if you use the estimates for Y2000 and $34.00 if you use the Y2001 estimates. biz.yahoo.com It broke up through the 100 day EMA which attracted some buying interest. 207.61.23.98 But, a lot of people bought at this 25 level in the last 6 months and are now just getting even, so that is why the range was so tight on Friday despite the high volume. cnetinvestor.com Interestingly, someone is already buying the Oct 40 calls. bigchart.com siliconinvestor.com Other technical measures signaled a buy signal on Friday. But the trading on the shorter time frames is strange and would make me cautious. Overall, I would wait for the first half hour of trading to finish on Monday. If the stock is still above Friday's close and has not risen too fast I take a position with a first target of 30. Stop loss would be at 22. Remember the market could be down to flat on Monday in all probability as most people won't take position in advance of the Fed. Though the rise in the chip stocks suggest that people think there will be strong upside after the Fed. I personally like to see a stock with more coverage by the brokerages and higher average daily volumes. Unlike earlier in the year, the strength in tje optical sector will not raise all boats. So stocks have tanked and won't be coming back any time soon.