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Microcap & Penny Stocks : International Automated Systems -- Ignore unavailable to you. Want to Upgrade?

To: Bob Walters who wrote (1158)	12/22/1997 1:02:00 PM
From: Lyle Abramowitz	Respond to of 7618

Bob, You are probably correct about manipulation of IAUS stock price. It also may be related to MM inventories being reduced to take advantage of tax losses. Let me reiterate a few things: 1) I have no financial interest in IAUS whatsoever. My interest is purely technical/professional and somewhat sociological. 2) DWM will not work as advertised. Ever. The latest "explanation" given on the IAUS web site confirms that. The technical "arguments" they are spouting are absolute nonsense--for example the notion that reconstructed analog waveforms have a "nearly infinite" measure of information. It appears to me that they are trying to position themselves for a lawsuit concerning their earlier very public claims of high data transfer rates. I believe they will try to argue that when those claims were made they were referring to this other (patently incorrect) measure of information rate that they've concocted. I have showed the IAUS material to several of my colleagues and they all agree with my assessment. My advice would be to cut losses and not look back.

To: Bob Walters who wrote (1158)	12/22/1997 2:07:00 PM
From: jan_mike	Read Replies (1) \| Respond to of 7618

Bob - one email to go... This is a multi-part message in MIME format. -------------------------------------------------------------------------------- -------------------------------------------------------------------------------- To All, We can probably attribute the high volume, and raising price to any combination of a few things. We could be seeing the effects of natural fluctuations, we could be witnessing more market maker manipulation, or there could be some news about to be released regarding DWM. When a particular stock has a lot of amateur investors involved, we see a lot of emotional buying and selling. For example when the price jumps a little, many interpret this as the signal to buy (the tricky thing is that sometimes this is a signal to buy), which drives the price a little higher, which signals more people to buy, which drives the price higher, etc... Unfortunately it is very common for the less versed investor to hold back for a while, then jump in right about the time the pro's bail out (and smile all the way to the bank). When the pro's bail out, the price begins to fall, stimulating panic selling and an even lower price. The ones who get left holding the bag are often the ones that can't really afford to lose the money (who probably should have invested in a mutual fund instead). It's a very tricky game to buy at the beginning of a run, and selling at the end of a run. The market makers (MM) are the real pros at the buy low sell high game. They know just how to manipulate things to cause the pricing trends that make them millions, especially when emotional investors are around. It is very possible that a MM is out there buying up all the stock he can. This can cause a very expectable rise in price. Usually about the time the MM has accumulated a sizeable load of shares, the emotional buyers begin to buy in, stimulating a higher rise in price. Then the MM begins to slowly unload his shares for a handsome profit (unloading too quickly may cause the price to drop off before the MM has sold off all his shares). They can also play the reverse game here, but that's another story. The bottom line is that the powers that be know exactly how to play the smaller people like a fiddle. Though there are many laws protecting the smaller people, such manipulations can be difficult to isolate, and then to prove. As far as I know, the best way to protect yourself from such hollow price increases is to do your homework. If you can't find a justification for unusual fluctuations, it can easily be one of the above two things. Personally, I was preparing myself for an even lower price in the stock as people give up and cut their losses in time for a tax write off (this could explain why we have seen it fall to $1.00 towards the end of '97). Good news is what we have all been holding out for. Naturally good news on the future prospects of a company will almost always stimulate buying, and thus a rise in price. I have also heard information regarding a major university taking a look at DWM. I couldn't stand things any longer yesterday, so I actually called the company. The information I was given was very vague, but I did learn that the testing was complete and was told that we could expect to hear the results very soon. I wouldn't recommend calling them yourself, for they would just say roughly the same thing I just did. Calling them will just take up more of their time and divert them from things they need to be doing. From what I have heard, I hope to see good things in the next few weeks. Everything I have written is just my layman's point of view on what I have learned from personal study of the stock market. I am in no way an expert about its mechanisms and reasons for fluctuations. I am also not a spokesperson for IAS. I just passed on what I have been told. I think the faithful have a right to hear these things, and I personally believe that things are about to turn for the better. Sometimes I read techlist and SI posts and get very frustrated for IAS and what they are trying to do. I am aware of others' frustrations. Trust me, I share them. I have been a stockholder for several years. I think more people could stand to give IAS the benefit of the doubt with regards to their general intelligence though. Some of the degrading