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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Trumptown who wrote (40212)	11/3/2000 2:25:52 PM
From: Rande Is	Read Replies (2) \| Respond to of 57584

. . . CAUTION. . . .to anyone getting bogged down in small or micro-caps. Suggest using strength in some of these to help fund larger cap winners which are consistently making new highs. . . especially those which have Phoenix tendencies. Most of the gains are going to come from the LARGER caps. There are simply TOO MANY long shot micro caps to go around [due in part to the high number of IPOS]. . .to see the sort of pops that we have seen in the past. It used to be that a 1 dollar stock could pop to 4 one day and 10 the next. That simply is not happening anymore [for whatever reason] and it should NOT be expected to happen any time soon. Fund managers seem to be shying away from the smaller plays these days. . . and individual investors tend to gravitate toward the smaller plays. I am sensing this becoming a trap of sorts. . . remember, as these stocks drop to penny status, it is relatively easy for short-sellers to drive the company out of business. . . as share price determines whether or not the company can get financing. Timing plays are still fine, but I have limited the number of timing plays I hold. . . and am more diligent to sell them on pops. . . .to fund my winners. I add to my winners a small bit at a time until I have reached my target position [core or position trade]. As the markets rise, I would MUCH MORE prefer to have a small number of shares in a larger cap stock showing steady gains of 4% or 5% per day. . . . than having a large number of shares in a stock which doesn't move with the markets! Rande Is