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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: John F. Dowd who wrote (51536)	10/18/2000 7:29:33 PM
From: The Duke of URL©	Read Replies (1) \| Respond to of 74651

>>Duke: Why after hrs. is SUNW flat to down and MSFT is up?JFD<< Quick snappy not well supported answer: Short covering. MSFT: 1. Short daytraders' not unreasonable prior placed bet that even if earnings were good, stock will drop. Fear that stock will be even stronger tomorrow with a larger consequent loss caused covering in a relatively thin market. Coupled with the True Believers who did not panic sell. See 2. below. 2. Institutions and mutual funds don't seem to be at this time present in the aftermarket. Those Mutual funds who have decided to dump for window dressing or tax reasons have done so in the day market for the last 2 or 3 months, where the volume can be absorbed better without the very sale triggering its own price decline. [otherwise known as the "YUPPIE-FUND-MANAGER-HEY-IT'S-ONE-OCLOCK,-I-AM-OUTA-HERE-AND-BESIDES-IT-AINT-MY-MONEY-SYNDROME] SUN: 1. SUN did finish slightly up in after hours, but it would not matter if earnings were up even more, funds are just happy that it didn't go down. Few are buying more Sun right now in this market, at least tonight. It has been up 100 percent in the last year. The perception FOR TODAY, anyway is it is not going to fly another 100% soon. 2. The prerelease snafu, whether or not intentional, dissipated and diffused the impact of the otherwise stellar results. On the other hand............. :)))