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To: k.ramesh who wrote (9594)	2/4/1999 8:23:00 PM
From: Casaubon	Respond to of 14162

could someone help me interpreting a chart. I am reviewing a stock called open text (OTEXF). It has just bounced off the lower BB and the the bands are widening. Does this imply the stock will have a hard time breaking out of the upper band? Does it just imply greater volatility, with wider swings in prices? iqc.com

To: k.ramesh who wrote (9594)	2/5/1999 8:44:00 AM
From: Herm	Respond to of 14162

OTEXF I changed the readings on the chart you listed from weekly to daily, and added the volume. OTEXF has a 45% growth rate and is finally starting to make some profits. With a 31.9 P/E OTEXF is perhaps selling at a slight discount. NASDAQ: (OTEXF : $21 1/16) $371 million Market Cap at February 4, 1999 Trades at a 31% Discount PE Multiple of 31.9 X, vs. the 46.3 X average multiple at which the Software & Services SubIndustry is priced. Short interest was at a 12-month high for OTEXF requiring almost 1.5 days worth of buying to cover the shorted shares. For the short term OTEXF is being weighted down by the higher short position due to the increased liquidity created by those shorted shares. 01/99 375,528 259,052 1.45 12/98 133,794 221,858 0.60 11/98 37,876 134,887 0.28 10/98 32,182 57,642 0.56 09/98 10,278 81,497 0.13 08/98 67,407 84,850 0.79 Bottom line? OTEXF average trading volume is around 271,324. Yesterday, was a rough day on the NASDAQ and OTEXF managed to creep out with slight gain on lower volume. Without news or trading volume OTEXF will cave in to shorts and fall. The bottom price support level is $10. Will OTEXF make a second attempt to make a new high? My head tells me yes and the chart is showing some clues. The lower BB is moving upward, the RSI is bottomed out and just starting to curve upward and the stock price is moving up! I would venture to say the stock will make an attempt for another test of the 52-week high only because the EVERYTHING took a dump yesterday and this stock still managed to come out on the positive. That is usual and a good sign that a short squeeze is possible with more volume! iqc.com