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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: 5,17,37,5,101,... who wrote (4457)	10/28/1997 1:30:00 PM
From: Rob S.	Respond to of 11555

Great timing on your buy - wish I had more uncommited cash. All the talk about the "big boys" screwing around with the market is out of place. I don't think that a large portion of hte market wanted a major correction. In fact, we probably owe it to the "big boys" for pivoting the psychology of the market. Many of the countries largest corporations were probably contacted by Ruban's office or just did their "corporate responsibility" thing to shore up the market in their stocks. that served as the catalyst to shift market opinion in the early going this morning. Examples of this: IBM and several others announced new stock buy-back programs. They were probably into the floor of the exchanges and had agreed to soak up the outstanding sell orders, albeit at fire sale prices. That was all that it took to get the blue chips headed north and cause the "average small ivestor" to rethink his earlier conviction to "sell at any price". Many stocks are now trading at 30% higher than they were at the open of the market and are up for the day 10% or more. Some are higher than they were on Friday. The media has made their millions on selling commercials for news programs, and newspapers and magazines that are tarrifed to the Nielsen ratings on the excitement that the 7% "crash" has created. They can go on spouting generalities about things they understand little about - the details of high-tech sector stocks. -------- So what do you do now? I think that there will remain many stocks that get bid up on unrealistic or unproven expectations for future earnings. Many single product category companies are still trading at 30-50 P/Es on next years earnings. Some of these will prove to justify the glowing analysts recommendations based on "revolutionary new products". But many more will prove to be worth much less than they are now trading for. Still other companies which have very good prospects for new product and market growth and capitalization on prior strategic investments in diversified product areas will remain relatively undervalued until they start to put stellar sales and earnings on the table. I think that IDTI will continue to trade in a zone until significant sales and earnings improvements are more solidly proven. Congradulations on pickiung up this misunderstood and largely ignored stock at fire sale prices.

To: 5,17,37,5,101,... who wrote (4457)	10/28/1997 11:34:00 PM
From: Mason Barge	Read Replies (2) \| Respond to of 11555

<<I bought some at 9 3/4 . . . Alas, in hind sight i should have dumped at 14>> Jackson: Your purchase at 9 3/4 was astute. Your fantasy that you should have dumped at 14 is not. Obviously you didn't know that the market was going to tank, and IDT could have never seen the down side of 14 again. But you reasonably knew that it was going up above 10. So you really got both side right. And I hope this shows you how completely out-to-lunch most street truisms are. "Don't average down" is terrible advice, which you have ignored to your benefit.