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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: fiberman who wrote (3091)	10/26/1998 2:37:00 PM
From: James H. Irwin	Respond to of 8307

What you are missing is the concept that success begets success(in a relative strength definition ala IBD) in that PM's (Portfolio Managers) go to what's working. Right now EBAY is a concept stock with a lot of momentum behind it. What PM's unfortunately do is sometimes unfortunate but oftentimes gives opportunity to patient retail investors: Example: Say the guy at Janus buys EBAY on the IPO. He enhanced his allocation from his broker by telling that broker he would be good for another 100,000 in the aftermarket (after the stock opens up, oftentimes at a significant premium)...the Janus guy wants the shares, and the broker wants to allocate his largest piece of stock to his largest aftermarket buyers. Now, the Janus guy gets a large infusion of money in his equity fund. He hasn't necessarily found any other solid names (or maybe EGGS is too small for him) and so he tells his trading desk to go buy another 100,000 shares of EBAY and other internet names because he want to enhance his exposure to the internet. The longs squeeze the shorts, the mutual funds, get the MM's short so they jump over one another to cover, break-even, etc. By the way many times MMs get killed in this kind of price action. Do you think any of them thought EBAY was going to be up 20 today...don't think so. Moral: that's why they call it a feeding frenzy. bon chance

To: fiberman who wrote (3091)	10/26/1998 2:42:00 PM
From: trouthead	Read Replies (2) \| Respond to of 8307

This is a good question Mallox Man. I just checked out the earnings statement for both companies. And eBay ain't doing shit. They had 8.9 mil in revenue with $100,000's in earnings. While eggs had 35 mil and a loss of 6.8 mil. Hell we're losing almost as much money as they take in! Maybe that is the problem. We lose money and we don't have the glamour shield that protects amzn. If Mr Ozone doesn't turn things around here pretty soon I'm going to find out where he lives and take a dump on his lawn. I bet a I could get the Bald one to join me. jb