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To: Arthur Tang who wrote (755)	4/7/1998 7:52:00 AM
From: Arthur Tang	Read Replies (1) \| Respond to of 1471

Why "buy cheap sell high" is not the way to go; unless you are a management consultant and proactive stockholder? Peter Lynch said buy cheap sell high; you have to wait for two years. That was his success when he bought Chysler during the government bailout. But most of the cheap stocks has problems. One of the most difficult to over come is large short interest by specialist or market maker. If that is not a problem; then you have to look at the cash position to see if the company will survive. After that, you have to check to see if the company has an angel. If George Soros is the major stockholder, pull out before he squeezes you out along with the other stockholders. Angels like the government for Chysler is good; but not as good for Continental Illinois Bank by FDIC. If more money for the company is not a problem; refocus and re-engineering can be put into the company, in time to do business to improve the company. If the company can never be a large cap business; why waste your time and money?