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Technology Stocks : 3DFX -- Ignore unavailable to you. Want to Upgrade?

To: Piranha who wrote (9125)	11/20/1998 1:11:00 PM
From: Sun Tzu	Read Replies (4) \| Respond to of 16960

The only option theory I subscribe to is that if you see a few thousand out of money near options are changing hands, then something noteworthy is going on. I think a lot of TDFX option speculators got burned today. As an option participant, the significant number for me was 14 7/8 as I sold the 15 calls at Monday's open. Like I said, we will hover around 13 for a while and then move higher. For the record, I am not worried about TDFX's fundamentals at all. Not only the stock is highly undervalued, its fundamentals and market outlook (for both the company and the stock) are improving. I expect them to blow the analysts' estimates out of water for this quarter. The most important lesson I've learned from TDFX, is that if I invest in micro-caps with limited float, then I'd better learn how its shareholders think. It seems that most of TDFX shareholders fluctuate between manic depression and rage of ecstasy from week to week. This makes the stock defy logic. But that's ok, I think I've figured out the method of this madness <G> Sun Tzu P.S. Frank I took a look at NTAP for you. It's been sometime since I visited it (it was a short of mine for a couple of months in 96 and in 97). As far as technical analysis goes, you have nothing to worry about. It should go higher and when it stalls, just sell some out of money calls. Fundamentally, it is not the kind of stock that I invest in. I stay away from any company that sells at more than 6 times revenue. What you want to make sure is that revenue growth continues at a good pace. Go back to the times in 96 and 97 when NTAP fell. Make sure that history will not repeat itself. As an aside note, given that you seem to be rather reluctant to switch your positions quickly, I am surprised that you invest in volatile stocks. Your personality and that of your stocks should match.