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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: TWC who wrote (1322)	11/27/1997 12:38:00 AM
From: Ed Perry	Read Replies (1) \| Respond to of 17679

Another day of possible base building. That last trade of 18k near the high only confirmed the same price which was prevailing earlier this day. Lombard (now Discover) has free interday charts. Instead of saying "possibly accumulating" what about "lessening of selling?" AXC can only rally when the sellers are outnumbered by the buyers. Reviewing the last two years price history, buyers and sellers were evenly matched in the trading range of 6 to 10. Then there was a big slide from 6 to 4, finally a sharp drop in quick time from 4 to 2.50. That last sharp drop is likely the last selloff of the holdout longs. Some observations: . Since AXC has not really stopped going down, purchases here are highly speculative. There is almost no information to support a purchase. However, if such information is forthcoming, either from the market or the company, then at today's price levels, there is very little price risk. . If one waits for corroboration of some kind, and there is a rally, then at that time there is less information risk but more price risk. . Ah. How about initiating a position and then using a stop loss somewhat under 2.50. Not such a bad idea? Well maybe not. If there is a lot of sideways motion and even another Oct something day, then you risk being wipsawed out of the market and the specialist will be very happy. . So what to do. I look for those fast selloffs on good volume accompanyied by a lot of disgrunteled growsing. . I do not use stop loss protection. If you are wrong, bear the pain and sell out at an subsequent rally. In AXC this will be from 1 3/4 to 2 3/8. . Well what else is there besides the news and the price chart tracings? There is the company track record, its balance sheet and its market position. If current price levels seem out of sync with the company profile then the market prices may very well be. Or, you can tentatively proceed as if they were. In sum, I took another bite today. I'll gladly substitute information and even time risk ("dead money") for price risk.