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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?


To: Scott Ozer who wrote (747)5/6/1998 2:34:00 PM
From: JessiDani  Read Replies (1) | Respond to of 2702
 
Scott:

I've got to disagree with you. The liquid stocks, such as large cap, large float, high visibility stocks may decrease in value, but you can always get your trade in because there is a market for the stock, whatever the value is.

With the small microcaps, sell orders for 50k or a 100k shares, all by small investors or by funds, of a microcap can tank the price dramatically because there is no liquidity. Something like Lucent that trades millions of shares a day on average won't be bothered as much. A 10% decline in LU could be a great long term buying opportunity, but a 25% decline in a stock like VARL could represent a long term problem for remaining shareholders. I've seen it before and that's why I raise the question of what exactly does this company, VARL, do that others don't which make it special and less immune to a general sell off?

JD