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Technology Stocks : PUMA Technology -- Ignore unavailable to you. Want to Upgrade?

To: Neil Mintz who wrote (819)	11/21/2000 11:07:17 PM
From: Wayners	Read Replies (1) \| Respond to of 851

My thoughts always on big drops like that are to draw the downtrend line on the daily chart, wait for a bounce back to retest that downtrend line or wait for the 3 day moving average to start curving over again and then sell. I have shares at about $13 even. Can't believe it dropped as much as it has. Its mostly due to the COMPX IMO but the lack of positive earnings in this environment isn't exactly a plus. Since I only have 1,000 shares of it I might just let it ride but don't let me influence your decision there. I think if I wait it out, the January effect or Santa Rally or something is bound to get us back to $13, just need the COMPX to cooperate. As far as owning at $24 one option would be to capture a tax loss on it to apply to something else you have gains on and then buy back in 30 days. I think the smartest way to effect the tax loss scheme would be to double down now and then wait 30 days and sell the shares you have at $24 or just sell now if you don't like the company and take the tax loss. As far as the company goes, I think the revenue growth is fine. They are pulling in over $40M a year and the sequential growth has been 11% or so giving it annual revenue growth of about 33%. Now here's a question for you. Does a company growing at 33% annually deserve a Price to Sales ratio of 33 to be fairly valued? If so, PUMA is worth about $30 in a decent technology market. Might explain some of the brokers/analysts targets.