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Technology Stocks : Cymer (CYMI) -- Ignore unavailable to you. Want to Upgrade?

To: Andrew Vance who wrote (19426)	9/8/1998 12:00:00 PM
From: Curlton Latts	Read Replies (3) \| Respond to of 25960

Andrew-You pattern CYMI similar to DELL. I too have had CYMI/DELL type experiences with other super stocks. Generally, the pattern enfolds along the following lines: A super stock with a monopoly hold on new, high-growth, high-demand technology comes out in an IPO. The stock soars, the market makers have to go short to supply the increasing demand for the stock and the retail brokerage fraternity - knowing a good thing when they see one - brings a large number of retail investors into the stock. The stock soars some more trapping the market makers in a short position they need to cover. The wise guy gambler independent shorts see the position of the market makers - know the market makers will try to take the stock down to cover - and come in and short wildly and recklessly driving the price down. The news media wanting a reason for the decline are fed all sorts and sizes of false rumors (i.e. there's been a fire at the factory, the product is having quality problems, there is a Japanese company coming out with a competing product, there are accounting problems, blah, blah, blah). All lies of course but reported on nonetheless and designed to stampede Joe Retail into selling on a scare. The Lerach type parasites file meritless class action lawsuits at the behest of the shorts in the hopes of obtaining a nuisance settlement that after paying legal fees provides shareholders nothing. All degrees of teeth gnashing, rumor spinning and rumormongering take place. The market makers start to cover while the stock is down. The big fly in the ointment for this plan begins to turn the tide as the true underlying fundamentals of the super stock begin to manifest themselves. The stock drops down one last time signaling that she's going up. The upward movement begins by inches as to not attract to much notice as smart money starts to take hold of the stock. Later, as it becomes more widely recognized upward flurries in the form of spike ups begin to happen. The stock starts to soar as everyone wants a piece of the pie. The stock starts to make new highs $50 - $60 - $85 , it splits and then it doubles and splits again. The retail customers come back in droves. I've been in these stocks before. The tell tale signs are all here. Good Luck To Each And All Curly ~~~~~~^^ [6.6] .....> [_