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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Sam Raven who wrote (47321)	4/5/2002 7:28:50 AM
From: TREND1	Read Replies (2) \| Respond to of 99280

Sam You wrote "In just the last few weeks I read somewhere about research which showed that out of all the stocks that drop into the 10 dollar range, only 3% of them ever go back over...did anyone else read that somewhere? I'd sure like to look into that more, cause it is hard to believe." answer: Yes. I read the article too. (1)Once a stock goes under $10 only 3.4% get back above $10 in the next 12 months. (2) I recall the study was done on all listed stocks. (3) Maybe some one can post the study. Larry Dudash

To: Sam Raven who wrote (47321)	4/6/2002 1:02:04 PM
From: J L Segal	Read Replies (1) \| Respond to of 99280

"If that research is correct, the risk is too high to trade long those stocks under 10, and that is where a list of shorts should come from." My first question is, what time period is being used? That research might be true when looking at a bull market, going into and through a bear market. However, what if we are entering a new bull market? There are many good smaller cap growth stocks out there that have been 'repriced' due to the bear market, and fallen below $10 Smaller cap stocks are expected to outperform over the next few quarters. The RUT has been quite strong relative to the rest of the market. 'Fallen' large caps, could be a whole different story, and might be good candidates for shorting after free falling to below the $10 level. JLS