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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: P.T.Burnem who wrote (26245)	9/2/1998 5:14:00 PM
From: Brad Bolen	Read Replies (1) \| Respond to of 94695

Guys and Gals, Any of you small cappers out there notice that the market is trying to tell us that some of these babies are not going to make it? At least, that is what I think the market wants us to think... I have noticed a pattern with some of these little guys...often in the last couple a weeks once some stocks got low enough (usually around 5 or so) they suddenly tanked, even in the face of buybacks etc. Only then, they rebounded hard to the level they were at the final break, sometimes only a hour or so later. I pointed out an example to you last week. VTEL (that dog) was at 4.5 and suddenly tanked on low volume to 2.7/8. I posted and an hour later it was back to 4. I now figure this is a MARGIN WASH. Some poor folks are having to dump their small stuff to get out of margin trouble. I saw it happen firsthand yesterday with a guy at my brokers office. He had received a margin call of 100 grand (not on VTEL) and the stock was at 4. He has been trying to liquidate slowly to cover without them noticing--1000 here 2000 there--but the stock tanked to 2 something anyway. It happened to one of my stocks at the end of the day today. I know for a fact that the company has bought 25% of a 2 mil buyback in the last week, but it went from 4 to 2.75 on relatively low volume in the final 10 minutes. These are either the buys of the century, or they are all doomed. Thoughts? B.

To: P.T.Burnem who wrote (26245)	9/2/1998 5:14:00 PM
From: P.T.Burnem	Respond to of 94695

Colombia effectively devalues peso REUTERS BOGOTA, Sept. 2 -Colombia bowed to pressure on its peso currency Wednesday, announcing a de facto devaluation that analysts called the first significant change in any Latin American country's exchange rate policy since Asia's financial turmoil erupted last year. The surprise move, which was expected to step up pressure on neighboring Venezuela and Ecuador to devalue their own beleaguered currencies, was announced by the central bank after an emergency policy meeting late Tuesday night.