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Technology Stocks : Playing the *NEW* Phily Exchange Internet Index (.DOT) -- Ignore unavailable to you. Want to Upgrade?


To: TWICK who wrote (5)12/12/1998 8:02:00 AM
From: gizelle otero  Read Replies (4) | Respond to of 25
 
The DOT - - - "The DOW for the 21st century?"

The DOT is equally dollar-weighted. This means several things to investors in the stocks that make up the DOT:

1. Lower priced stocks in the DOT (OMKT, SDTI, EGGS) have to be bought in a greater quantity than higher priced stocks (YHOO,AMZN) by any institutions which may set-up mutual funds or baskets of stocks that seek to track the DOT. This could help these stocks.

2. All stocks in the DOT should begin to experience greater daily volume, greater put & call premiums, and greater volatility than those internet stocks not in the DOT.

3. There may be a move to add 10 more internet stocks to the DOT so that it has the same number of stocks as the DOW. The DOT may become "The DOW for the 21st century".

Comments? Hope everyone is enjoying this thread.



To: TWICK who wrote (5)12/12/1998 11:11:00 AM
From: FUZFO  Read Replies (1) | Respond to of 25
 
TWICK, EGGS could easily go back to $6.00 I agree. Watching it trade I just don't like it here around 20. Sold 500 shares this week that I have been holding from 28 that got filled the way down on monday crash 2 weeks ago. Its ok though as EGGS will be my tax loss (albeit small) for the year, made a bundle with internets the previous week :-)). I have been following these favorites ONSL, EGGS, OMKT, AOL. Have not bought anything (internets) for 2 weeks since the blow-off top. I think this week if the market goes into Clinton gyrations it will shake up these internets a little. Will be looking to buy onsl in low 30's (1/2 position). THe .DOT should eventually serve to stabilize these prices a little, and also provide some solid bottoms where institutions just wont pass them up, but I don't think the index has enough following yet. as always jmo
Fuzfo