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Technology Stocks : Noise Cancellation Technology (NCTI) -- Ignore unavailable to you. Want to Upgrade?

To: David L. Wasylenko who wrote (2366)	10/5/1998 4:17:00 PM
From: TA2K	Respond to of 2775

David, Yes, for several reasons most technical analysis seems less useful for the pennies. But I think it is far from useless. The primary reason TA is not so useful is that often bid/ask is just a single tick apart, and, thus, opening and closing are basically random events, just so happens that one happens versus the other. A second reason is that 'preferred share conversions' often take place among the pennies, and their random nature and general downward consequences overwhelm all else. However, Moving Averages, for one indicator example, fall under the category of Technical Analysis. And MAs, I feel, for the careful and skilled eye, can tell a lot about the future direction price will most probably take. Regarding NCTI, I feel (not that I have a careful and skilled eye) that if the subsequent 5-day MA trough fails to break to below the prior one, that we just may have turned the corner on this stock, and some upward movement may seem more probably than not. The current 5-day MA as of this morning was heading south, and any bottom was yet to happen -- the eventual bottom could end up significantly below the former bottom. But by mid-morning, even in a horrible general market, there was substantial buying going on of NCTI. And it looks like the MA has indeed seen the current bottom, and is now going to be heading up. And I think that looks good for the short-term prospects on this stock. David, NCTI may not be a beautiful house-trained Golden Retriever (fundamental-wise). But this, as you like to say, "dog with fleas" may be good for a rather easy 6% or 12% near-term (buying now at 1/2), and possibly good for a double in the next 10 trading days (prior to the General Shareholders Meeting). Nicholas Nicholas