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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: naresh baliga who wrote (29271)	6/6/2004 2:21:36 AM
From: George Dawson	Respond to of 29386

I posted my best guess in post # 29192 on this thread. Since then there has been a significant change in earnings predictability. According to some we also might be in a stabilization period after being oversold. I see this as trading dynamics of the stock and they have been fairly unique to some tech stocks that have weathered the bubble. That has also made Q a favorite of funds that appear to vigorously trade and short the stock. The reference in my previous post that you might no longer be able to link to is listed below. It is a mathematical model of price fluctuations that shows that trading of a few large participants affects the stock price. Although that may seem intuitive - there is plenty of evidence on this thread that it is not. There was also a recent 10-K filed on June 2 where management discussed some decreased revenues in terms of HDD controllers due to a product transition at one of their customers with the expected ramp in 2005. That same document showed a higher effective tax rate. George Dawson Xavier Gabaix, Parameswaran Gopikrishnan, Vasiliki Plerou, H. Eugene Stanley. A theory of power-law distributions in financial market fluctuations. Nature 2003; 423: 267-270.