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

To: Lawrence Burg who wrote (2368)	10/5/1998 7:05:00 PM
From: TA2K	Read Replies (1) \| Respond to of 2775

At the last hour possible, NCT attorneys appealed the NASDAQ delisting. NASDAQ agreed not to immediately delist, but to first grant a formal 'hearing.' No word has yet come out as to when such hearing may take place. Last I spoke to NCT, two weeks ago, word was that no correspondence regarding the hearing has yet been received from NASDAQ. In fact, NCT said they aren't expecting to hear from NASDAQ for "weeks, if not months." I've tried to research a little on other companies having delisting problems. It appears that well over 300 companies are having trouble with the $1.00 rule, yet still are trading on NASDAQ. On the other hand, several NASDAQ delistings have indeed occurred. But these delisted companies were in violation of the 'Net Tangible Assets' rule of NASDAQ. It appears that this rule is a far graver issue that a company may face, and really get delisted for. The $1.00 rule holds within it the paradox that the rule itself, and inherent threat of NASDAQ delisting, may in fact be a very significant cause of the stock price staying down!!! Many important investors will shy away from stocks with even a prospect of delisting -- i.e., being close, even above, the $1.00 mark; thus that posture tends to bias the stock price downward, and prevents subsequent price recovery. I feel that were it not for the $1.00 rule, NCTI would be higher right now. I hope NASDAQ wakes up on this. If you can easily see moving averages with your set-up, would you please look at a 5-day moving average of NCTI? Would you agree that if NCTI heads up again to 17/32 x 9/16, which would bring up the MA, would you consider the formation a head and shoulders -- shoulder at 7/28, head at 9/8, shoulder at (expectedly) 10/7? I think it would be the first such formation in about a year. I can see, since you pointed it out, that one must not only consider the decreasing descent of the troughs, but must also consider the continuing fall of the peaks. You say that you wouldn't consider putting money into NCTI unless/until the "statistical balance continues to shift positive." What would be the first sign (relative troughs, peaks, etc.) or one or two indicators (or combination) that would trigger your interest in actually placing a buy order? Apparently you would not want to buy in the trough of a shoulder, as ostensibly appealing as that would seem.... Thanks, Nicholas