To: i-node who wrote (8047 ) 12/16/1997 11:38:00 PM From: Ghassan I. Ghandour Respond to
Come on guys, if you look back at the stock actions, every month of December over the last three years, you would see that BORL drops on year end tax selling only to recover and go beyond in Janauary. The volume accompaning the drop indicates that the action has nothing to do with a vote of confidence or no confidence in the acquisition. Yes, indirectly though, the announcement may have been the one to create a retracement of the price of BORL thereby enhancing the envirement for tax loss selling. But, in no way the selling has been frantic to indicate institutional voting about the acquisition. In view of the market behaviour this month, the stock price may have gone down regardless. In fact, looking at the bright side, BORL did not revisit its low reached on October 27 when it droped to 8 even on the Asian woes, along with the rest of the market. Most other stocks did go back down to their respective lows and beyond and only yesterday they started rebounding (CYBE up 3 7/8, VICR up 3 7/8 -- both
yesterday). So, BORL looks solid in this respect. Option players, however, could understand and appreciate better what I have been saying all along, on this board. Regarding VSGN's earnings, I think the market will be looking at this as a situation that Del will have to turn around like he did with BORL. A one quarter where all the dirt is thrown into the sink (a sink quarter) will occur like it happened with BORL. We will indeed have to wait two quarters to see how the thing plays out, and I am confident it will all be for the better. Only momentum palyers may be getting impatient. Go BORL... Ghassan.
