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Microcap & Penny Stocks : WCAP - Winfield Capital: Insider buying -- Ignore unavailable to you. Want to Upgrade?

To: Tom Hua who wrote (790)	4/13/1999 6:13:00 PM
From: Scott Bergquist	Respond to of 1305

10-bagger??? Eh, I only see those with options, trading on the last day before expiration. I saw a CIEN 15 call go from 1/16 - 1/8 to 4+ in one day..that's a 32-bagger! Nope, -somebody- is going to run out of money here real soon...I mean, who will be buying at 3X, or 10X?? No one will have the $$$!! ================================================================ Which brings up an important point in trading in 1999. Let's say a guy -did- buy AMZN at $24 (last April) 2000 shares. Come January 1999, his $48,000 is worth over a million! If not in an IRA, does he sell?? Well, then 40% (in Calif +Fed) goes to taxes. I think alot of these nouveau riche would prefer to hold, even at 60% down from the high, than sell and give money to the govt. Heck, esp if it's appliable to the margin requirement, just -borrow- money as you need it and leave the shares alone. I think this is a dynamic that is keeping alot of this internet frenzy afloat, long after it has been battered and the "swoon" has been declared. Heck, EBAY can shoot down 33% in a day, and the daytraders think, "It's all over." But since there is a "core" group that is so far up, they don't sell during the panic, the price finds support, the daytraders always say, "Weak hands got shook out..only up from here!" and the fantastic overvaluation remains intact. Just think..the =tax system= is making this all possible!!! regards SRB