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Technology Stocks : C-Cube -- Ignore unavailable to you. Want to Upgrade?

To: DiViT who wrote (35266)	8/19/1998 1:05:00 AM
From: Rarebird	Read Replies (2) \| Respond to of 50808

Good Question. But I must say that the chart is also fundamental to me because it indicates price performance. When I enter a position, long or short ( especially short ) the daily price movement is crucial to me. There are usually many buy limit, stop limit and buys to cover a short at the moving averages ( 10 day, 50 day, 100 day, and 200 day moving averages). This market has become in many ways a momentum driven market. The momentum seems to originate around the security decisively breaking above or below some of these moving averages. I've day traded on momentum quite successfully- although it's a suicidal way to invest. As for MO, I've chosen to focus on the fundamentals because I know the tobacco industry will ultimately prevail over Clinton and the Federal Government. In a way, the stock market is all about the emotions of greed vs fear. The McCain bill, which ultimately would have bankrupted the industry, if it passed, created a fire sale valuation on MO due to immense Fear, which is still present today somewhat. By my calculations (which I've posted on the MO thread ) I figured MO's food and beverage units was worth $40 share. So, I figured I was getting the tobacco business for free at $40 and getting the food and beverage business at a discount under $40, while I wait for the Fear to dissipate and MO to get back to a more normal valuation. Clinton and the Federal Gov't vs Bible and Goldstone ( or Gates for that matter ) is like putting an ant in the ring with Mike Tyson ( don't tell me the ant would win). What comes around goes around. How do you feel today Slick? Cube is a totally different story than MO. Whereas MO's problems deal with litigation risk, ( 80% chance of being settled with the States by Labor day), Cube's problems are more fundamental in nature and more difficult to resolve: 1) Lack of investor confidence in Management. 2) Economic instability in Asia. 3) Competition. Cube is the Industry Leader for the time being. Very few people think Cube will be able to hold that position for long and execute properly. The present multiple on Cube is evidence of that. Will Cube learn from its errors? It remains to be seen. Ultimately, it's all about fundamentals. But the technicals sure come into play at decisive turning points. Witness how Cube ran up to its 200 day moving average the day after it reported earnings and then backed off 33% to a new low. :)