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

To: TWC who wrote (2144)	11/27/1997 7:48:00 AM
From: John Kratus	Read Replies (1) \| Respond to of 2326

Stocks that are out of favor do especially bad in November and early December as shareholders establish tax losses and institutions try to bury their mistakes before the end of the quarter. ANET's in this situation right now. The so-called January effect, in which these stocks bounce back from the oversold condition once the selling is over, has been so widely anticipated that it has been happening earlier and earlier every year. I expect that this year it will come in early to mid-December. Also, December and January tend to be good months for tech stocks. I have actually made good money being long on ANET this year by buying on the big downdrafts and selling on the bounces. Yesterday I got in again at 8 3/8 and I expect to ride it up to 10 or 11 in the next few weeks. ANET has $6.63 a share in cash, so the company itself is trading for less than $2 a share. Unlike some on this board who have been burned owning this stock, I don't see much risk here at these levels. John