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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: Carole who wrote (554)	3/31/1998 11:32:00 AM
From: HeyRainier	Respond to of 1720

[ Encad: ENCD ] The stock is back to square one, I see. Pricing competition (I've seen this before) has leveled expected earnings for the year, making the prospects for near term future growth flat and unattractive. The chart has been reflecting this view for some time as the price action (i.e. downtrend) successfully indicated future disappointments. Until the chart reflects an improvement in company fundamentals (i.e. a break from its downtrend), I will have to stay on the sidelines on this one. Purchasing now, even though it is at a very good support point, may still cause one to hold a market-underperforming issue. Opportunity costs represent perhaps the largest risk for the issue, even if it doesn't go down from here. We risk not having our money better traded elsewhere (like in the KKRO's of this world). There may be existing value in the issue, but without growth, it cannot pass as an attractive investment at this time. Regards, Rainier