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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sandra who wrote (5741)	6/8/1998 12:22:00 PM
From: Magnatizer	Read Replies (2) \| Respond to of 29382

Sandra maybe a little of both. The long term technicals are not real impressive. Short term are mixed with a bias towards a good short term run. The news should push the short term up but there are many who were burned in the recent pop who will want to dump at even. In other words, going left will get you right but if you went straight ahead you may end up where you began. ht david??????

To: Sandra who wrote (5741)	6/8/1998 1:15:00 PM
From: James Wright	Read Replies (1) \| Respond to of 29382

Sandra -- LEAP issued a press release on Friday, and again this morning. You can take it two ways -- either trying to get good news out to soften the impact of a weak earnings report, or else trying to lay a foundation for a rise in its stock in anticipation of a good earnings report. I'm betting on the weak earnings report, but I could be wrong. I will be re-investing in LEAP once it hits a firm bottom -- which is yet to come, I believe. In response to David Zimmer's posts comparing THNK to LEAP, I respect David but I believe that in one year, LEAP will have outperform THNK on a percentage basis from current levels (although THNK will be at a higher price). After all, how high can THNK go on current earnings and earnings projections given its current price of 19? Also, THNK is a very troubled stock right now, with high volatility. I wouldn't touch THNK until it begins to show a clear pattern upward, or that it has clearly bottomed out. Right now, it is not possible to figure out which way THNK is going over the short term, and it could go far lower than its current 19 (of course, it could go higher, but again its not showing any indications that it will do so at this time). Having said that, I readily agree with David that THNK is the stronger of the two companies. It's just that THNK has already been discovered (in fact, the SI message board for THNK was begun based on my research just before it took off) and the price reflects that fact. And although THNK now has analysts covering it, that wasn't true until it hit 17 and Volpe came on board (I was holding THNK then, so I remember that day very, very well!). No analyst is going to touch LEAP at under 3, just like no analyst would touch THNK until after it had reached the teens and it began to show steady success. Also, keep in mind that THNK is now trading at 19, which is not much to boast about if you're Volpe and recommended the stock at 17! In addition, the most recent analyst's recommendation was lukewarm, at best. Thus, comparing the two companies based on analysts' coverages isn't a valid basis for any investment decision. The two companies are in very different stages in their stock life cycles. By the way, I hate to say I told you so (not you Sandra -- this thread in general), but NMGC is up about $1.5 today and it looks strong for a continued climb up. -- Jim