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Technology Stocks : APSG - Applied Signal -- Ignore unavailable to you. Want to Upgrade?

To: SuiteStock who wrote (737)	4/19/1998 1:37:00 PM
From: Christopher Brainard	Read Replies (1) \| Respond to of 884

StockSuite, I agree with you "Absent more information, my guess is that the stock is going down because it had been driven up so far so quickly". I like the company and its future prospects, but at $19 it had gotten quite a bit ahead of itself (at least by my valuation perspective) but as usual I did not follow my own valuation model which was saying take some profits. I would not be surprised to learn that much of the move from $9 was brought on by the 'Momentum Boys' getting into the stock as apposed to long term investors building a position in a good company. The quick slide would then be the result of these guys running away from the lost momentum. When investing in under appreciated small cap companies you wait for the day when the Mo Boys jump onto your find. You know when they do your long patient hold of this small little gem will finally be rewarded. You know they will push to stock up to the point where you will be forced to sell as a 'value investor'. Some day the money driving these small cap stocks will be the longer term value investors. With just a small fraction of their available funds they would be able to buy into and support a large number of companies like APSG. Rather than these manic ups and downs we now must live with, the pattern would be more stable and in line with the companies long term grown rate. APSG is now selling for a price that will again interest the value investor. It may take a number of months to happen, but we will again revisit the old highs and even move higher. This recent sell off has been an opportunity for disciplined value investors to take some profits and now for everyone to get in or back into a very attractive long term investment. Good luck to all. Chris ...