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Microcap & Penny Stocks : ATEC Group. Huge growth with PE of 12.5! -- Ignore unavailable to you. Want to Upgrade?

To: John Chapman who wrote (986)	12/3/1997 6:26:00 PM
From: Steve Rundel	Respond to of 1298

> Tony: I think you are right on. Buying is bound to kick in when the > price has been driven low enough to scare out the sellers. I hope > to buy some more when that happens if I can detect it fast enough > and that is a big if. 3 1/8 looks like the bottom, but I doubt it > will be driven that low because too many will be waiting for it to > hit that to buy. How do you know it's going to scare out the sellers and not attract short sellers? Right now, ATECD kind of looks like one of those new issues (though it isn't) who's hit a peak after issue and is now on it's way down. Shorters looking at the chart see no bottom support levels for the stock, so they hammer away at it. Since it's a penny stock, it can drop to nearly nothing since short sellers can be very relentless. One shorter draws blood and the others rush in and attack. I've seen it time and time again with penny stocks. On top of that, the company starts releasing more stock since they're afraid if they don't do it now, they won't be able to later without really flooding the market. All the time they're shorting it, the faith in even the strongest believers gets shaken and they start selling their long positions. Eventually it gets to 50 cents and waits for some big news - I mean big - to really get it moving long term in the other direction. People seem to pretty much ignore minor press releases when it comes to pennies after awhile. They'll buy into them a little at first, but after awhile they get tired of them and ignore the hype. How good of a company ATEC is doesn't matter. It's only on the big exchanges that that matters the most. The pennies are played by greed, stock manipulation, flooding, hype, etc. They rarely ever get to the point where their price starts reflecting where they should be - most all of them are undervalued and stay that way unless some big miracle (very rare) alerts some big investors into driving them up beyond $5 or so. I've seen this happen too many times. You're best bet is to hope to buy and sell on fluctuations. Don't try to hold it long term, unless it seems impossible for it to get any lower, and ATEC has a long way down before that happens. Forget company fundamentals for now. Of course, you do what you want. I'm just sharing my frustrations. As of today, I've bailed out of all my penny stocks. That "year-end rally" is for bigger stocks - it has little or negative effect on penny stocks.