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Technology Stocks : SILICON STORAGE SSTI Flash Mem -- Ignore unavailable to you. Want to Upgrade?

To: unclewest who wrote (1013)	10/3/2000 1:54:28 PM
From: Lynn Goodman	Respond to of 1881

Unclewest, Stockhawk: Below is my Oct 1 PM to Tony and then further comments from me. <...re the cup and handle analysis of SSTI. I would add that some bets are off re % declines when it is not a bull market (that is even part of the quote that one of you references from O'Neill). Also, I was most impressed by the volume drying up in the handle. I have been looking at a lot of charts lately, and often I have not seen this classic characteristic in the handle. Also, I feel like I have recently looked at a lot of charts where the timing seemed wrong--maybe it looked like a great cup and handle, but the valuation was really high (eg, BRCD). Or the chart looked pretty good, but the stock had already run too far past the pivot point. Or, the chart looked good, but there was a lot of overhead resistance (Q, and felt that way about SNDK, last time I looked). So, I REALLY like that this company has both a good chart AND great EPS and revenue acceleration, but low PE and seems undervalued. SSTI is now picking up two large underwriters, which may bring that undervaluation to light and help the stock.> Further comments: Now that we have a negative Monday and part of a negative Tuesday under our belts, I am thinking that the handle formation has indeed broken down, possibly because investors have taken the SPO news as bad news rather than good. I don't think that it would be profit taking at this point--SSTI had a good pattern of slightly declining price on low volume going until the SPO news came out. I have tried to abide by O'Neill's strategy, which would normally dicatate for me to sell yesterday's purchase, which has declined about 7%. Even though it is not a good idea to adopt only the part of a strategy that you find appealing at the moment <g>, I am not inclined to sell here. My inclination is that even the only possible negative news, the SPO, is more indicative of forward thinking and big things to come. So, I am staying in but watching closely. Regards, Lynn