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Strategies & Market Trends : The Rational Analyst -- Ignore unavailable to you. Want to Upgrade?

To: HeyRainier who wrote (1245)	6/28/1998 10:02:00 PM
From: Scott H. Davis	Read Replies (2) \| Respond to of 1720

[Cup & Handle question] Several people have refered to this chart formation on threads before, but in looking at the chart, I never see it. As a former art major, things that are visually intuitive work well for me, but this one escapes me. Could some kind soul please enlighten this semi-clueless wonder as to: What is a cup & handle formation? What does it fortell? Thanks, Scott

To: HeyRainier who wrote (1245)	6/29/1998 12:02:00 AM
From: smh	Respond to of 1720

CTAL My sincere thanks for looking at CTAL. I see the cup & handle on the 1 year chart. Actually, I was focusing on the 3 month chart where I thought I was seeing a classic wedge and the start of a breakout. The two don't seem to be inconsistent and the cup & handle description provided by dave horne fits the CTAL story. Again I am a novice, particlarly at the TA stuff. If you are interested in the CTAL story, it is well told here; streetnet.com Concerning valuation, the above report is projecting 60% growth over four years. From the report " Applying a 25 P/E multiple to 2002 earnings of $2.00 per share and discounting back at a 30% discount rate, we arrive at a 12-month price target of $18 per share" The report is from 1/98 and the price at the time was 12. The interesting thing to me is that we have hit the 18 target on essentially no news, although big news is expected soon. Thanks for pointing out the insider sales concern. Had not considered it and don't know what to make of it right off.