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Strategies & Market Trends : Russian Crisis - Is it a buying opportunity? -- Ignore unavailable to you. Want to Upgrade?

To: AJ Berger who wrote (86)	8/31/1998 6:14:00 PM
From: Jeffrey L. Henken	Read Replies (1) \| Respond to of 175

AJ, nice job! If the market starts to recover from here we need to have some stocks to look over as potential buy candidates. I think I like CPQ the best of the group. Here is a listing of the stocks from Yahoo if anyone wants to take a look: quote.yahoo.com CPQ is now below it's 200 day moving average but it still should have some support at either the 27 or 26 level if the sell off continues. If we have anyone out there with a greater fundamental knowledge of these companies do not hesitate to share your insight. Also anyone with better technical analysis skills, please pipe right in as well. I want you to feel free to share your due diligence right here. BTW AJ, I had to take my profits in WAVO at 15. Actual earnings are still too far away. Regards, Jeff

To: AJ Berger who wrote (86)	8/31/1998 8:55:00 PM
From: Ray Tarke	Read Replies (4) \| Respond to of 175

You are correct margin selling in the last hour of trading, and will continue tomorrow morning. The market will rebound after the morning sell-off and be Up for the day 305. points. The Scoop on Liquidations By James J. Cramer 8/31/98 6:32 PM ET Liquidations cause this kind of selling. So let me explain what liquidations are. When someone borrows money to buy a stock, and that stock goes down substantially, the broker demands that more money be put up. When the client doesn't have the money, the broker sells him out. This situation is akin to the homeowner flipping the keys to the banker because she can't meet the mortgage payment. That kind of selling is writ large on days like today, particularly in the afternoon, when the broker goes to his boss and says, "My client is hosing us. He's not sending money in." The boss then instructs the broker to sell and close the account and keep the proceeds for the firm. That's why you can be standing there trying to buy some McDonald's (MCD :NYSE) at 57 and get a 56 report. The seller at 56 is just a market seller, ordered by a brokerage house, not some thinking, living person making an investment decision. He didn't negotiate that price with me. He sold it through me! These kinds of sellers can't be stemmed and don't stop for imbalances, bargains or buybacks. These sellers are automatons driven by the need to raise cash, not to perform. Usually it takes a couple of days for all these liquidations to sort out, which is why no one wants to buy any sort of opening tomorrow. We all want to see how much forced selling is left to be done. My bet is that these vicious cycle of selling can't run its course until all the speculators are sold out, and that is not only a price issue but a time issue. Liquidations create great opportunity for the long-term people. They are crummy for everybody else. Oddly, there are some people buying stock right now at above-market prices in Instinet. That seems a little silly to me, so I gotta go whack 'em if they are buying things I am long. Stay tuned. thestreet.com Hosing will continue in the morning. A day to pick up many bargains. Anyone else will will like to take a Stab at the closing price tomorrow. I say plus...305. Regards, R.T ÿÿ