To: sport who wrote (1028 ) 7/28/1998 11:43:00 AM From: dfloydr Respond to of 1055
To: sport From: D. Floyd Russell Tuesday, Jul 28 1998 11:34AM EST -Preview- sport From: D. Floyd Russell Tuesday, Jul 28 1998 11:33AM EST -Preview- Remember sport, the market sets the price and the market is NOT always rational. I have, many times, seen some fund manager unload a position for who knows what reason ... he wants to free up cash for some other investment ... a major client is liquidating fund holdings ... who knows. And then I have seen traders at funds do what see to be stupid things ... like dump a lot of a thin stock rather than take the time to negotiate it out. I used to work on wall street and saw it happen time and again. Once in a while they dumped a stock like THRX, but they had a cost basis in the stock of 25 cents so even though they trashed the price, they scored big in their terms. How about a couple of years ago when Fidelity single handedly did in most of the tech stocks - dump - dump - dump.... about three months before they took off and went - up - up - up. Look at the madness in internet stocks! I used to work with an internet company. Most are counting on ad revenue as their business model ... sort of like radio stations. Have you or anyone you know ever looked at an internet ad. Not me. Will advertisers keep paying for stuff that does not yield a return? For a while, yes. Does this justify the prices people are paying today? I wonder. These days we have trend followers by the thousands out there looking for momentum. When they see it ... up or down ... they pile on. Many do not even bother to find out the whole name of the company ... all they need is a chart and a ticker symbol and they are in business. I sat in one such shop about three months ago and watched the gang searching through daily trading charts. When a promising one popped up, it was a mad race to place orders ... an hour later the chart turned and they all bailed out. They made some money. Is that investing? Does any exec control those traders? Do they even read the news tape? It is a bit mad and I do not believe it contributes to an even market. But as long as it works for them, they will do it. Sometimes your view is absolutely right. I got burned $40k twenty years ago when the execs at Levits furniture just plain lied to our analyst. It happens. But just because a stock plummets does not make the execs liars. They too can be swirled around by market action. Enough of that subject. Interesting to me is the fact that nothing serious has emerged since the collapse in THRX's price. The market is a big place and no exec can hide everything from the whole world forever. Yes NASI has received approval for their seeds. That is hardly news. Here THRX sits at something around half it's recent price. It is still growing like mad. Seeding still seems the best treatment for most prostate problems. More and more docs are learning how to do it. No other alternative treatment seems to be looming. We might be looking at a half price sale opportunity.