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Strategies & Market Trends : Tech Stock Options -- Ignore unavailable to you. Want to Upgrade?

To: Robert Graham who wrote (41305)	4/25/1998 8:30:00 PM
From: Joseph Francis Torti	Read Replies (1) \| Respond to of 58727

HI I notice Dell's may 80 calls is price 28.00. This is a mis-quote right? I went to two quotes source and they both said the call are selling for $28.00. In a way I hope this isn't wrong I am long the stock. (G)

To: Robert Graham who wrote (41305)	4/26/1998 7:14:00 AM
From: donald sew	Read Replies (1) \| Respond to of 58727

Bob, You write so elequently. I agree, and simply put - major buying in the market is on hold for a better dip buying opportunity. Just subjectively, if there is a big one day drop, say 200-300 DOW points, the funds will be buying, and the rebound will be immediate. Seeya

To: Robert Graham who wrote (41305)	4/26/1998 7:38:00 AM
From: jjs_ynot	Read Replies (2) \| Respond to of 58727

>>> One key to this puzzle here is noting how the funds were willing to aggressively and even IMO recklessly purchase very large blocks while the stock was in a steep uptrend. This is not their standard method of operation. Funds normally cannot afford to purchase stock like this since this approach can cost them allot of money unnecissarily. In this way, they are working against themselves. Normally in a situation like this, funds will purchase during selloffs by the market which provides them with a ready supply of shares to purchase. So this activity is not a normal rotation. <<< This type of activity by larger institutional buyers suggests that the large block buyers are having the same difficulty that many others are. Specifically, there are few areas of compelling valuation with the market at this level. Thus the funds and individuals are going with what they know. Large techs for funds and individuals are following the Market Makers into the Internet mania. This does not suggest much of a sustained move up from here.

To: Robert Graham who wrote (41305)	4/26/1998 11:02:00 AM
From: j g cordes	Respond to of 58727

Bob, there are services that track absolute volume per sector. Perhaps the funds are rotating back into the tech sector. One question here is why they chose second tier stocks instead of first tier stocks., Or that tech funds are buying... A diverse market like ours looks to asertain value by comparing (PE's, growth, pricing opportunity and other measures), to sectors within its own borders. We will first compare NB/CCI to HWP/IBM, instead of comparing these to Sony in Japan or Mercedes in Germany. Because of this a diverse market can fool itself into ever higher and increasing internally judged relative prices comparisons. That way, we can say one sector is undervalued relative to another sector and money will rotate to it to bring the whole system up to par with itself... regardless of how overvalued the whole system is becomming. I found it interesting as many internet related businesses suddenly felt left behind and undervalued relative to YAHOO, SEEK, AMZN and some others took off! One said "... hey AMZN didn't earn a thing and they're trading near 100, we should go to 200 because we made .03cents!" On a larger scale, though not as pronounced, the same thing is happening. IBM is saying its a 200 dollar stock because its PE should be closer to KO's... and on and on. This won't change simply on valuation or funds pulling back a little. The under pinnings of this are broader and the task of money is to find opportunity even when valuations are historically high. There is an increasing opportunity for renegade capital (the Soro's, short funds, speculators, momentum players of all size), to attack the underbelly of this market... I expect to see more of that on a sector by sector basis. Jim