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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Dave Twibell who wrote (12850)	8/16/1998 11:19:00 AM
From: Mama Bear	Respond to of 18691

Dave, it looks to me like Daou management has been caught playing games with the balance sheet. With the shadow of SOC and CD hanging over them, a weak market in general, a weak sector, and the fact that it put in the 52 week low Friday, it looked like a short sell to me. I was also happy about the article because I know a lot of traders took it home long this weekend on the notion that it would gap up. The article makes it less likely, and the disciplined traders who were playing for that gap will dump it shortly after the open. If it shows weakness at the open, I may be covering it before 10 AM. Regardless, it should test that new low shortly (pure fundamentalists may feel free to scoff). You also want to consider the cockroach theory, that being that when you see one cockroach come out of the wall, you can be reasonably sure there is a full nest back there. I understand Daou had it's bookkeeping questioned back in March as well. Barb