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Technology Stocks : WAVX Anyone? -- Ignore unavailable to you. Want to Upgrade?

To: John who wrote (2640)	6/9/1998 7:45:00 PM
From: M. Frank Greiffenstein	Read Replies (1) \| Respond to of 11417

Just instinct... John, I have no special talents, just years of experience with "concept stocks". Concept stocks have predictable runs once rumors start. The length of the run depends on when people expect the good news to materialize. WAVX had a longer run than most because of the time frame: About four weeks between rumor inception and anticipated materlization (in this case, E3). I sold on the news, the SMSC annoucnement at E3. It was good news, but not the earth shattering news expected by most. As in most cases, reality is always less exciting than fantasy. That is the principle behind the "buy on rumor, sell on fact" theory of buying momentum stocks. One ingredient is doing this successfully is to FOLLOW a stock closely, even when you don't own it. And follow stocks after you had sold them. That's how your sense of timing develops. Can't be taught in any books. This works in reverse very well to, meaning you can short stocks at the point that rumor should have been proven fact. I don't short stocks, but I was very tempted with CCSI. The critical point came at the pediatrics convention in New Orleans in early May when CCSI was supposed to roll out their Colormate device to much applause. Huge contracts were supposed to be announced, shorts would be crushed, multibillion dollar market cap, blah blah blah. The contracts never materialized. The stock has gone into decline since, with free fall the last 3 days. Anyway, you don't need to do what I do with WAVX. For complex reasons, I have chosen WAVX as a trading stock rather than a core holding. That doesn't mean it isn't a good buy and hold stock. DocStone