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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Cymeed who wrote (12482)	1/11/1998 12:19:00 PM
From: John Bloxom	Read Replies (3) \| Respond to of 25960

<<Volume was very light for Cymi during the last panic sell-off on Friday. This ought to indicate something>> This is a very reassuring sign. It suggests that the stock has finally found its way into "strong hands". When a stock sells off like this, there are multiple waves of selling: those who were in early and who are preserving gain; those who are playing the stock down, such as shorts; those who buy at false bottoms and do not have the financial strength to hold on through the following downlegs; those who are overcome by fear; and those who tax loss sell to "protect" gains elsewhere. But on each wave of selling, a certain number of shares are purchased by financially strong, long term players, and these shares are effectively taken out of the trading "float". Diminishing volume and narrower intraday price ranges therefore suggest in any falling issue that the long term players are soaking up the trading float. CYMI's behavior on Friday strongly suggests that financially strong investors have soaked up most of CYMI's trading float. You can reason this from the low volume and the absence of panic in the issue in an otherwise panic-stricken market. In short, it appears that heavy-hitters finally have bought up the shares once owned by the traders and intra-day modem jockeys with the result that the company is now owned by people who neither want to sell nor have to. With the stock owned thusly, it will begin again to reflect its long term prospects and not factors which are largely extraneous to those prospects. If those prospects are excellent, as we all here hope and believe, the stock will perform excellently. Two further thoughts: (1)$100.00 says that M/S and Monkey Sec. are putting their clients back in the issue (someone a few posts back indicated that Jay has returned to an upbeat posture on the company); and (2) those who are naked short on this issue and who watched the action on Friday fall into one of the following three categories: (a) those who perhaps know something bad about the company about which we do do not know; (b) those who will be covering as soon as practical; and (c) idiots. Anyway, that's how it looks from over here. Regards, John