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Technology Stocks : International Rectifier (IRF) -- Ignore unavailable to you. Want to Upgrade?

To: Dr. Perry Lucero who wrote (1006)	6/3/1998 12:11:00 PM
From: DanZ	Read Replies (1) \| Respond to of 1712

Al, Doc, Fred, Marvin, Raven, et al, The weakness in IRF surprises me. A big seller came back yesterday and today and is pressuring the stock. For the most part, big traders like this make decisions based on fundamentals and don't use technical analysis. Either they want out because of fear of something going wrong or something is actually going wrong at IRF. Or it could just be window dressing or they might want the cash for another investment that they like better or their analyst might have told them to sell it. The good news is that the seller is being met with an almost equally big buyer. Unfortunately we won't know if the seller or the buyer did the right thing until later and the stock will probably have traded anywhere and everywhere by then. This is why I prefer to use TA over FA to make decisions. However, TA or no TA, I'm comfortable tucking IRF away for a while to see how this plays out. I sold a small amount of my position the other day at 10 5/8 (bought it at 10 3/8) with the intention of buying it back if it pulled back. I'm still holding a rather hefty 12,500 shares. The stock traded once at 9 7/8 this morning and that tells me that there were no stops triggered when it broke 10. If there had been stops at that price, it would have traded more than once. This is encouraging because it indicates that the stock is in relatively strong hands and there are few sellers down here with the exception of one. After that one trade, the bid moved up to 10 and the size is building again. The sentiment is very low on semiconductor stocks right now and I think the SOX is basing with very good support between 240 and 250. IRF is still a buy based on TA and risk/reward and I like the valuation as well. I'm confident that this trade will work out extremely well but I'm starting to think that it will take a few months and a lot of patience before the market realizes that IRF is too cheap with a valuation of less than 1 x sales and 1.3 x book. Dan