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Technology Stocks : Ampex Corporation (AEXCA) -- Ignore unavailable to you. Want to Upgrade?

To: killybegs who wrote (6026)	3/4/1999 12:05:00 PM
From: Michael Olds	Read Replies (1) \| Respond to of 17679

I think the question that Jill and Jerry and some others are really asking is “How do the AXC bulls know they are correct in the face of this merciless onslaught?” Is this a matter of a pile of sand that has been stacked too high and the sand on the top slipping off, or is it a matter of someone digging at the base of an otherwise stable pile to cause the top to slide off? The technical case for AXC alone will not answer this fear. What we can assume is that those who are selling or those that are vulnerable to pressure are of two general groups: those who do care about the merits of the company but who do not yet understand it, and those who do not care about the technology and who are interested only in the possibility of making a quick buckulum. This dictates a twofold strategy. 1. Clear concise presentations of the technology aimed at the grossly ignorant (educate me, guys!), and 2. Presenting a clear understanding of the dynamics of the market for AXC stock on an ongoing basis. In that Strategy #1 is being addressed in what seems to me to be a fairly competent manner (Not really a criticism, but I could see some of you experts out there putting together White Papers, essays, etc starting from A and going to Z, as opposed to the helter skelter addressing of questions that is now the case.) For strategy # 2, what will stem the flow of blood is knowing what is at work in the decline: knowing that it is one's fear that is being manipulated. Knowing how that fear is being manipulated will go a long way toward awakening recognition that that manipulation is itself based on a confidence in the stock that should be being adopted by the sellers! This is how I see it working. (Now I am not saying I know, I am saying I think I see, OK?) We have a case of a stock that is rising from a very low level very very quickly. It has taken certain players by surprise. These players enjoy special privileges. They have permission, or are backed by enough money to sell into that rising market without actually owning the shares. At a certain point there will be a necessity to buy back the shares that have been sold, and there will be a few very big orders out there. A few people are not hard to contact (and if the fact of contact is deemed to be too conspiratorial, in fact it is not necessary because a large buyer makes his position known by submitting a bid at below market). An arrangement is made (or is made in mind) to satisfy those very big orders at prices below the high end of the market. All that is necessary for those who have been selling into the rising market to create a falling market is to stop selling to the small bidders and to sell to the large bidders at a lower price. The price goes down. The sand starts to slip. The large seller becomes a buyer at lower and lower prices. The process continues until the large orders have been satisfied and the fearful players have been squeezed out. Now if that isn't a bullish case for AXC on two fronts I don't see what a bullish case is. If you think so, pass the word!