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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (74297)	4/5/2001 11:02:03 PM
From: puborectalis	Read Replies (1) \| Respond to of 99985

Thomas Watts, Merrill Lynch Watts did a study of stocks that fall under 10. The majority do not rebound, but those that do seem to have very large growth. Going back to 1985 and looking at over 1900 tech stocks, on average, only 3.5% of the stocks that fell into single digits got back to $15 or above before the end of the year. However, after the biggest downturns, the biggest upturns follow. Those stocks that rebounded usually had a rebound of about 180% within 12 months. So the returns can be large for picking single digit stocks. Most stocks that fall below ten are ultimately bought out or go out of business. He bases his ratings of these stocks on how much cash they can get, because they tend to be cash squeezed. If LU can get through this cash squeeze, it could be set for a rebound. Watts' Rebound Picks: EXDS DIGX Watts recommends staying away from the following single digit stocks, thinks they are on the way out: SWS NAVI INAP MCOM Watts thinks the future for the following single digit stocks is in the air: AKAM ISLD GBIX GENU USIX

To: Haim R. Branisteanu who wrote (74297)	4/5/2001 11:03:30 PM
From: Crimson Ghost	Read Replies (1) \| Respond to of 99985

Haim: I have a different take. Today's rally was genuine all right, but it's suddeness and the lack of base building classify it it as a bear market rally. Now bear market rallies are often explosive and very profitable for smart longs, but they don't last long. A few weeks more or less. The January rally is a good example; this looks like a re-run.