Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (38888)	5/9/1999 7:23:00 AM
From: lee kramer	Read Replies (2) \| Respond to of 120523

JENNA: A few thoughts; (1) There are somewhere between 8,000-10,000 MUTUAL FUNDS. There are maybe 10,000 stocks on the NYSE/NASDAQ combined. Many of these 10,000 companies are shunned by the Funds. That leaves an awful lot of Fund dollars chasing very few stocks; Q.E.D. An "upward" bias...especially when you add in the day traders, hedge funds. (2) I try to watch for a stock's (or a markets's) REACTION to news...not just the news. Example: Friday's employment numbers were benign to bullish (the S&P futures ran from a minus 1.70 to a plus 10.70 in minutes. But when trading began this bullish news met a negative reaction in the bond market...bonds dropped, rates bumped up to 5.80. As Hal Holbrook (Deep Throat in "All the President's Men") said to Robert Redford "You're missing the big picture...FOLLOW THE MONEY. I think it's always wise to follow the money if you can spot it. Another example: A stock drops 10-15 points for no apparent reason or perhaps due to anticipated "lousy" earnings. The earnings are announced, they are lousy...but the stock doesn't drop. So the REACTION to the news becomes the key. A rally typically follows. (The converse is often true with strong stocks with "good news" and no further upward movement. (3) The article I mentioned in last week's The New Yorker, "The Black Box" offered this quote near the end: "The bulge of credit that moves around the globe with the sun and the time value of money, whose bits and bytes are flowing with ever-increasing velocity, dictate that success goes to the swift. Moving with equal rapidity are the risks that can wipe out unsuspecting players. Less sophisticated technology will lose out over time to more sophisticated technology....this is why the Old Boy Network is being replaced by the computer network.Call it the revenge of the nerds, but everyone on Wall St. is scrambling to develop computer-driven trading programs" and this: "The push to develop black-box financial systems is an arms race that the world's major financial institutions have joined." This is the reality of our markets today, and it seems folly to me to fight it. Best perhaps to anticipate it whenever possible, to stay out of the way of this money-dinosaur-steamroller when you see it headed at you and (unless you've taken good positions at what turn out to be market/stock tops or bottoms) hit and run, hit and run. Hell, bear markets in markets and stocks now are measured in days and weeks...where once it was months and years. I think you're taking the right approach Jenna, but try to keep an eye peeled. These guys are constantly trying to "black box" you (not you personally) onto the back-bench. (Lee).

To: Jenna who wrote (38888)	5/9/1999 12:26:00 PM
From: jjs_ynot	Respond to of 120523

Happy Mother's Day.

To: Jenna who wrote (38888)	5/9/1999 11:23:00 PM
From: sherlockgerlach	Read Replies (2) \| Respond to of 120523

Jenna, how do you recommend we trade the upcoming net splits? I am especially interested in RNWK (May 10th), NTBK & NITE (May 14th) and EGRP (May 21st). Will there be anticipatory upswing on these similar to earnings plays? Are they tradable around the split dates? I'm in at 153 with NITE. I thinking about selling into any gap up with the idea that the shares will trade lower between now and the split. What do you think?