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Strategies & Market Trends : STOCKS WITH ATTITUDE TEAM - FA/TA AND EVERYTHING ELSE -- Ignore unavailable to you. Want to Upgrade?

To: David Smith who wrote (595)	12/20/1997 6:09:00 PM
From: Doug R	Read Replies (1) \| Respond to of 2377

Christopher, YOU can short them. You are not constrained by lack of margin (if you are an employee of a market making firm). I see no problem with putting the possibility that a member or members of the research team may have bought before the post. That you believe it is sold into the buying that may be generated by the post shows your lack of understanding of what we are trying to accomplish...picking good stocks with good fundamentals that are on the verge of a significant 3 month gain. Again, if you took the time to review the 15 or 16 stocks in the group of POW's, a large percentage of them went on to do that. Everyone is aware that not all of them will outperform but in the short-term we had a good success rate. As far as recent performance, being short almost ANYTHING has been the best side to be on. We have tried to screen stocks both technically and fundamentally. On the technical side I use a system with a short-term horizon of 3 months. If you look at the charts for the stocks on the following, you will find that sometimes it takes a bit longer. Anybody who sold into any initial buying of the post, got peanuts in most cases. The best money was made by holding beyond a period where mm tinkering was of any concern. Message 1678636 The stocks in this post were picked using my system and NOT posted as POW's. The POW format was developed to allow for more concentrated research efforts and less of a shotgun approach of posting a bunch of stocks with no FA. You'll just have to believe that we are trying to find stocks that are in a position for anyone to make money on if they can avoid buying at the top of any little run up and cut any losses early. Just like in ANY stock. Doug R

To: David Smith who wrote (595)	12/20/1997 6:35:00 PM
From: Tim Oliver	Respond to of 2377

Christopher, I find it a little weird that a big-time Wall Street trader such as yourself seems to care so much about the "victims" of the "56" stock picks. First of all, anyone that buys 15 minutes after first hearing about a stock deserves to lose his money. Assuming that there are none of those here, shouldn't a big timer like yourself warn us about all the Wall Street analysts that frequently get their information to their own retail brokers before the general public sees it or even sees their recommendation change? Have you had any experience with analysts that make "strong buy" recommendations one minute and the next their own brokers are getting clients out of the stock? There's a fascination by some in microcap & penny stocks, because there is a perception that they're overlooked by the major research departments on Wall Street. This may or not be true, but I think it would be foolish to label those that make recommendations in penny stocks as stock manipulators. You've made a strong argument that microcap, under-followed, low volume stocks are inherently much more risky than big cap stocks, but there still exists a market and some of these become small cap and larger stocks and have a solid businesses and credible management. The "56" stocks aren't all penny stocks, but it's probably reasonable to say that Microsoft probably wouldn't be one of their POWs. Although there are probably some major investors and traders on SI, I'd be willing to bet that most are small-time, part-time investors that would rather buy $200 of XYZ company than put the $200 in a mutual fund. That being the case, there's probably more of a tendency for them to try to make a fast buck and to cut a few corners. Potentially, that would make the "56" stock POWs a trap. However, if you look around SI, that same potential trap exists almost everywhere else. What may be a potential trap to some though may be a starting point for smart investors to begin their own due diligence. I'm surprised that you seem to imply that Wall Street in some way is more legitimate than those that make recommendations and provide feedback here on SI. I'd think you'd be saying just the opposite if you really are a Wall Street trader. If you really want to help, why don't you clue us in on the negative stuff going on where you work so we can be smarter investors? Tim