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Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: DWCraig who wrote (5918)	8/26/2000 10:33:12 AM
From: RockyBalboa	Read Replies (1) \| Respond to of 19428

I have not got a very good price (and $8 would have been a good price) but it is always good to have powder (= capital) left. So, like buying a stock it is wise to sell only a small amount (some 20% of the planned position) first. Gambling and betting the full position at once is a sure way to the exits... For example, on CALY I started under 5.5 which was also bit premature because it then still added another $ to hit 6.5 (that shows that a stock being up 250% in one hour AM can have some room left). In general and when looking at dozens of charts these wild spikes are less likely to be sustainable than not... ie I put the odds that the stocks give back their gains at around 80%. It is also a bit typical for the season: Last August "Play by Play" was a 3 day runner from 1 to 7 before it petered out, amongst some others. Most of the times companies with weak fundamentals are involved - like QKKA, MZON, or PBYP, or CALY or... On the other hand, only recently I gathered some STMP below 4 because the discount to cash ($7.5) appears a bit steep to me...it traded up on a news release, however. Also, some stocks appear to keep their trading pattern for years. MZON appearently always spikes and falls back days after (look March 2000). I believe that it could close the gap within one week or 2. if it moved further up after 10:00 am the I'd usually cover and try later. Volume is the key, and whether it makes new highs. If for example it took out $8 at 11:00 am and makes a new high then it is wise to cover and try later. The safest way, however is to wait one day and see what it does on the next day when no additional news come in and people begin to forget about the stock and sell it back into the market...although the returns are reduced because the absoute selling price level ($6.5 vs $8) is way lower, so are the risks.