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Technology Stocks : Crystal Systems (CRYSF) - AD 2000 Solution IPO -- Ignore unavailable to you. Want to Upgrade?

To: Ron who wrote (475)	7/29/1998 3:58:00 AM
From: Kevin Michael	Read Replies (2) \| Respond to of 572

Re: Decline in CRYSF stock price. An announcement that involves a partnership with IBM and the stock barely budges. There is a lot wrong with this picture; I hope someone can provide some kind of explanation for the decline in the share price of CRYSF (were taking about 50 cent losses a day here). I will admit that the total market value of this company might be considered a little high, but if you consider the company's P/E ratio of about 20 and the solid rapid earnings growth then its market value is indeed justifiable. Maybe the market just wants to see if CRYSF can put together another strong quarter, maybe the market just hates Israel stocks, maybe the market hates this type of Y2k stock, maybe it a combination of all three. Anyway here is my concern: The thirty day average volume for this stock is 132,000, which means that well over 3,000,000 shares have changed hands this month alone for a stock that only has about 10,600,000 common shares outstanding. I think about 40% of the shares are held by company (management and employees) and maybe another 10%-20% by financial groups. So the float on this stock is very low making this a very volatile stock. The problem I have understanding is this: why have we continued to see new lows for this stock? There appears to be no bottom for this stock as it easily passes through its year lows. There usually isn't a narrow daily trading range either; the small float can explain why the share price moves so easily in any given day. Is this what is moving share prices down--the shorts? Or where more shares released?; supposedly we are in the middle of a buyback program. Are investors selling their shares and taking a unneeded loss? I think the shorters are controlling the share price of CRYSF. Recommendations to buy have come in from respectful brokerage firms; which did give a boost to the stock, but lately its been all downhill ever since. Is anyone out there holding? Where is everybody? It looks like the shorts have won this one so far as most of the shareholders have exited, but if CRYSF gets hot again--look out!!! For now though it looks like the shares of CRYSF are being controlled by day traders. Any comments? This is only my opinion. KM