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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: A. Henry Marzullo who wrote (13366)	1/4/1998 2:26:00 PM
From: Lancelot de La Rochelle	Read Replies (1) \| Respond to of 29386

Henry, I respect your disagreement with some of my statements, but I still believe we had some weak hands' shaking and capitulation on 12/30, followed by some strong buying, and short covering. This is how reversals usually happen: very heavy volume on a down day with a drop of 10%+, at the end of a long downtrend, followed by even heavier volume on the following day, with prices moving higher. A gap up, or a bullish engulfing pattern are especially strong chart indicators. We did have a bullish engulfing pattern on 12/31, although not a perfect one. We did not have a 10%+ drop on 12/30, but we did have two consequtive 7%+ drops before 12/31, which should be good enough. Anyway, I am not a technician, and if I were I would not have poured more money in ANCR @ 3 3/4, before seeing the reversal. You may or may not believe that there are people margined on ANCR. I know that to be true, I know such people. For them, high expectations for Q 2/3 '98 were reasons good enough to margin ANCR at depressed levels. Also, don't pity these people, as they have plenty of other investments and funds available to them. My point was about people who could not financially withstand the heat, or who had ANCR margined as their main or only holding. Last but not least: stocks under $5 cannot be margined. This is very far from the truth. It could be true for some firms, but there are establishments where one can margin warrants trading at 1/8, and perhaps OTC BB stocks and warrants. Again, I know this to be true. I am not quite sure whether it's legal or not though. It all depends on the firm itself, the financial strength of the investor and some other factors. Search and you will find out. Regards, Lancelot