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Strategies & Market Trends : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (327)	12/7/1997 7:06:00 AM
From: Dale Baker	Read Replies (1) \| Respond to of 118717

Here are three long candidates to chew on. I can't recommend buying any first thing Monday morning but they merit some research. SRA - Stratus Computers, makers of fault-tolerant systems for companies whose systems can NEVER afford to crash. Their biggest competitor, Tandem, was bought this year by CPQ. I kicked myself for not buying SRA in the 30's last time when it went to the 50's. SRA crashed after their last earnings - which were good - when they said growth this quarter and Q1 1998 could be lower than recent quarters. SRA is still a fine company. The chart shows a gap up to 45 which should be filled. I don't know if it's a 50% candidate or not, but it's worth considering for 20%. The only negative is the Stochastics showing very overbought at the moment. Watch for a temporary pullback or take a chance that you could sink a bit before you rise with this one. PSDI - I mentioned earlier as a trading range stock between 20 and 26. PSDI closed up and showed a MACD buy signal Friday. Problem is, stochastics here also show heavily overbought and this could be a fake move up from Friday's exuberance. With three months of trading over 20 it could be a tax-loss selling candidate. On the other hand, MACD crosses have signaled the last three runs up to the mid-20's. CGN - my favorite among the Magic 25 list which just came out. Should make a buck this year and $1.50 estimated next year (my magic 50% number). At only $20 it seems like a steal, with telecoms products which have sold well this year. Beware the MM's Monday morning who also read II and know that lots of eager beavers are ready to jump in. I may set a GTC buy order at $20 and wait for a pullback. As always, comments are welcome.