Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ed Perry who wrote (1365)	12/4/1997 1:44:00 AM
From: NicholasA	Respond to of 17679

I agree with the candlestick reading. Today we had a > 1/8th move up on higher than average volume!!! (something that has happened so few times in the past few weeks). Yes I am stretching it by leaps and bounds to imply that we should be partying....(we can begin to buy some paper napkins and plastic forks should we ever break a 50-day moving average, cloth napkins and metal forks for the 100-day ;) To push the envelope even further, the CBOE web site indicates 90 contracts (all January 5 Calls) were traded today. Though the total value of this is almost nothing (under $1000), it is still interesting. Lets watch for more option activity. 90 contracts would normally indicate next to nothing, but keep in mind that option activity has been dead for quite some time (as it should be when a stock is, in percentage terms very far away from the first $5 strike). (The only negative/neutral possibility in these 90 contracts would be player(s) who sold covered calls a while ago, now wish to sell the stock, but in order to do so, they need to buy the calls back.) I think the recent Bramson buy has got to mean something. There is no point in thinking he did it for the hell of it. Borrowed money is still borrowed money: there must be a rational belief that after interest he will make a profit (also keep in mind this guy has not been sitting on huge profits to pay for this roll of the dice and has felt the heat like no one else on this board). As for his timing / entry price, consider, he may have had no choice in the matter ( i don't know what windows of time that Ampex employees have to place orders ). I also agree that the tax loss selling looks over to me as well. Since eveyone knows "its going to happen", everyone who needs to do it, does it earlier (I did a little at $3). (Of course, if you believe the people who want to create a tax loss are looking for a lower low, then you probably expect Ampex to be at $0.50 by 12/31, in which case short it...) Also keep in mind that anyone who sold and wanted to come back in asap, would need to have already sold (IRS wash rule). I am not hyping we are back to $10, but $6 would not be too silly within 6 months. As depressing as this >70% drop has been, unless you truly believe this company will file for bankruptcy, the stock is a hold at this point. Many other companies out there have had this kind of drop, only to recover a year or two later. (if it does recover, the most annoying aspect of this will have been lost opportunity in other markets/securities) And lastly, to climb out on a shriveled branch that has been partially eaten by termites, I expect another up day tomorrow (especially given how the strength came in during the end of the day) it may only be another 1/4, but hey.... a quarter a day will keep the debt collector at bay...... Nicholas

To: Ed Perry who wrote (1365)	12/4/1997 4:52:00 PM
From: Sal Davis	Read Replies (2) \| Respond to of 17679

<<Once more AXC produced a close to paradigm Candlestick "Morning Star">> Are you sure its not a "Dead Cat Bounce"??