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Strategies & Market Trends : LastShadow's Position Trading -- Ignore unavailable to you. Want to Upgrade?

To: Dave Shares who wrote (6553)	1/16/1999 10:46:00 AM
From: Jay Lyons	Read Replies (2) \| Respond to of 43080

This is from Briefing, December 10. Let's not forget this the next time there's an Internet IPO. Like you said, we should have gone short DBCC Friday. (DAYTRADER)Fundamentals Don't Matter! When discussing 3rd and 4th tier Internet stocks, forget fundamentals, being able to identify the trend is how the real money is made. Obviously, not everyone understands this concept. Briefing.com received major criticism from readers after our November 13 Story Stock on Creative Computers (MALL 21 5/8 -1 1/8) discussing the spin-off of the company's wholly-owned subsidiary, uBid (UBID). What those readers failed to comprehend was the comparison between Creative Computers (COOL) and micro-cap, momentum play Winfield Capital (WCAP) was not based on fundamentals. The purpose of the story was to inform readers that companies with significant ownership stakes in Internet IPOs typically rally in advance of the offering and fall off a cliff after the deal hits the market. Those who were able to grasp this concept profited handsomely as MALL shares rally an additional 260%. Individuals who shorted the stock the morning of the uBid initial public offering have watched MALL shares tumble more than 40% in the four trading sessions since the deal debuted... A problem that many daytraders have is that they churn their capital by chasing every micro-cap stock with news out. The ability to identify prevailing trends is a much more efficient and profitable trading strategy than scouring the Web the entire day for the latest piece of breaking news.