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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: James F. Hopkins who wrote (18161)	5/8/1998 10:37:00 PM
From: robert b furman	Read Replies (3) \| Respond to of 94695

Ever since 1974 - when I read a book "How to make the stock market make money for you " by ted warren - I have invested in what you would call micro caps. Capitalizations that are 300 to 600 million. Invariably these small stocks rise - settle - rise to the previous highs and some market guru says sell and the little "dogs " plummet huge percents down. Simply by market participation in small cap stocks' I have noticed the dogs rally just before the top of most other investors positions. Noticing the rotation from big caps to large cap to med caps to small caps is really an excellent timing tool - only really easily achieved by utilizing these wonderful computers and the indexes one can make - or by following the media hyped indices that as you say can be manipulated by money flows. I don't really think there is any sinister plot or corrupt scheme - rather I think it is the pursuit of value-working down from the blue chips( which most milktoast investors were told in college was smart)to the lower end( lesser understood)high growth engines of wealth - that I think are a particular shining star of conservative management with an entrepreneurial flare for greed ) as can only be found (in a degree of frequency)in this not perfect but da-- sure wonderful country/economy of the U.S. of A.

To: James F. Hopkins who wrote (18161)	5/9/1998
From: James F. Hopkins	Read Replies (1) \| Respond to of 94695

Bob; Again I agree with you..and also that the micro caps is the most profitable place for smaller investors after they get some experience. Many of them fail but the winners offset that and have much better upside moves. What I noticed also is that they don't just track the market, it's almost like they are decoupled from the broader market. I'm sure this is because they don't get a lot of mutual fund buyers. Heck I posted 10 some months ago..on this thread and they have done well..and as a grope beat the stuffing out of the S&P. I traded my way out of them over a month ago, they are still up better than the S&P from the time I picked them but off their highs. -------------------- The fact that the fumbdums are hurting the broad markets ability at this time to be liquid hasn't got much to do with the miro caps..it's not some sinister plan..it's just them trying to window dress the NAVs at the expence of over reducing in the more liquid stocks, to grab at the fast runners. Jim