Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security -- Ignore unavailable to you. Want to Upgrade?

To: Bill Jackson who wrote (1915)	10/22/1998 8:12:00 PM
From: John S. Baker	Read Replies (1) \| Respond to of 2534

I agree with you that a wise investor will always consider the source of any investment advice he may receive ... and the same is true with general claims of "accumulation". In the case of my comment, was it a "selfish interest" as you surmise? I suppose perhaps so, but at least I publicly announce my possible biases (I am long a small position) and I also post with my own name so that others can judge my comments accordingly. As regular readers this thread have already noted, I usually preface any TA comments with standard caveats like "Your mileage may vary" or "to each guru his own chicken entrails." Nevertheless, when dealing with low priced or small volume stocks, mathematical forms of determining accumulation are less invalid than some other forms of TA. True ... "volume" can be generated easily by MM's or just big traders, so the goal is to look at what we might call "net volume" or "volume that has money where its mouth is". Put another way, the goal is to strip away the "noise" transactions in order to be able to see the real trend. For instance, Money Flow ... in which trades are weighted by the amount of money involved ... does indicate whether there is money flowing into or out of a stock. An A/D line ... which focuses on larger trades, and excludes trades smaller than a certain threshhold ... zeroes in even more completely on who is buying. Admittedly, this is still of marginal value when the threshhold is 5,000 shares (as I have set it for ALYA). 5,000 shares is hardly institutional buying. As an example, tTake a look at the following MFI chart for DGTC, with specific attention to the second half of September. bigcharts.com Note how the price stayed capped but the Money Flow increased steadily, almost every day. My interpretation is that someone was buying into the stock pretty heavily, even though the volume charts didn't show it. Whoever it was (not me), he timed his deed pretty well and has a 40% paper gain in one month. As for your fundamental assessment regarding ALYA's challenges, I have no quibble whatsoever. If I were advising my mother-in-law, I would say, "Don't buy ALYA." If I were advising someone with $250,000 in risk money, I'd say, "Be a buyer of ALYA in small amounts whenever it drops to less than 60 cents." Happy Due Diligence. JSb.