To: Marshall who wrote (31372 ) 3/11/1999 10:45:00 AM From: Axxel Read Replies (1) | Respond to
Well, the stock has a great base at the $2-3 level and that base surely did support a move to $9. The strength of the move attracted my attention to be sure, but these initial moves typically give back 80-95% of their moves and the stronger the moves, the more violent the pullbacks, short sellers notwithstanding and I have consistently cautioned about buying this stock prematurely. The preferred price progression from here would be a "dribble" to the upside approaching the old high and then an explosion into double digits later in the year [maybe earlier] with the short sellers making the new highs as they panic. In very many cases it is the short sellers in panic as the stock breaks out into new high territory that makes the stock truly overvalued. Obviously, we are not in overvalued territory at this point in time, we are in undervalued territory and I invite the shorts to step up to the plate and increase their position, legally or not, because they ultimately will make life more pleasurable for us in the long-run. Best personal regards,
