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Technology Stocks : CellularVision (CVUS): 2-way LMDS wireless cable. -- Ignore unavailable to you. Want to Upgrade?

To: FieldEffect who wrote (1372)	3/2/1998 8:37:00 AM
From: James Fink	Respond to of 2063

I read Bill O'Neil's book "How to Make Money in Stocks" over the weekend. The book has an interesting chapter on technical analysis and reading charts. O'Neil states that all stocks about to make a stong upmove have the same chart pattern. Specifically, the chart has a u-shaped cup pattern followed by a horizontal-shaped handle pattern. The usual percentage correction from the absolute peak of the cup on the left side to the low point of cup is a maximum of 33 percent. The right side of the cup should have a peak similar to the left side. The cup should be u-shaped, NOT v-shaped. According to O'Neil, a u-shaped cup "allows the stock time to proceed through a needed natural correction with two or three final little weak spells around the lows of the cup." After the cup is formed, the stock should remain in a tight horizontal range (the "handle") which is above the stock's 200-day moving average. According to O'Neil, handles that form below the stock's 200-day moving average are "weak, failure-prone price structures." A review of CVUS's chart from November to January reveals a classic v-shaped cup, where the right side of the cup did NOT recover to the peak of the left side of the cup. Secondly, the v-shape means that the stock has NOT gone through the necessary consolidation to move higher. This became obvious on February 17, when the handle collapsed and the stock went into a new downtrend. There is hope, however. O'Neil also stated that a second type of price chart is possible immediately prior to an upmove -- a double-bottom pattern. Arguably, CVUS could currently be forming the second bottom. O'Neil states that the second bottom of a "W" pattern must touch the price level of the first bottom or, in most cases, actually undercut the first bottom by one or two points, thereby creating a shakeout. O'Neil was talking about stocks in the $30 to $60 point range so I don't think his discussion of "one or two" point undercuts applies to a $5 stock. Nevertheless, the second bottom could bring the stock back down to the $4.75 level. Any alternative interpretations of CVUS' chart would be greatly appreciated!

To: FieldEffect who wrote (1372)	3/2/1998 9:41:00 AM
From: Hiram Walker	Read Replies (2) \| Respond to of 2063

Field, not sure who has the best technology,or whether there is much difference between these companies. LU just took over HP's division,who uses STII's chips. Nortel is the one I am concerned about as a HLIT holder. HLIT uses the same chips from STII that LU will be initially using. NT bought out BNI,and thus is the most formidable competitor to all of those involved. HLIT has an advantage over LU,regarding fiber optics,and network configurations of optoelectronics. No one has an advantage over NT,these are my opinions. Hiram