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Technology Stocks : HAUP - Hauppauge Digital -- Ignore unavailable to you. Want to Upgrade?

To: DEER HUNTER who wrote (595)	5/23/1999 2:23:00 PM
From: Buoy12	Read Replies (1) \| Respond to of 1149

Caught? I haven't been caught @ 27, have I? If this goes higher I have already stated I am cocked and ready to Average up. Are you buying more long at this valuation? Please be honest.

To: DEER HUNTER who wrote (595)	5/23/1999 4:41:00 PM
From: Keith Lenart	Read Replies (3) \| Respond to of 1149

I never understood this 'shorting' mentality Maybe this will help you understand.... Regardless of how great a company may be, single day explosive rises on blowout volume are rarely ever maintained in the short term. The "odds" are greatly in a short sellers favor. Some data I've accumulated over the years from monitoring performance of stocks making 100%+ single day gains: 1. Approximately 65% of these issues will gap up, 10% open flat, 25% gap down the following day. The average opening gap is about 6% to the upside. (This explains why daytraders like to buy these at the close and sell into the gap.) 2. Approximately 80% of these issues close DOWN the first day after the run up, despite the propensity for an opening gap up. The average close is 23% DOWN from the previous day close. 3. Approximately 85% of these issues are lower after one week (5 trading sessions.) The average price of these issues is down by 34% at that time. The average intraweek pullback low is 41% down from the close of the run up day. 4. In the 15% of cases where the issue is trading higher after one week, the average additional gain from the run up day's closing price is only about 24%. So, you can see why people like to short these issues. The average gain achieved by doing so is about 25% for a one week holding period -- even after taking into account the very few issues that don't retrace a substantial part of the gain during the following week. Just thought you might like to know. P.S. Lest you think I've only looked at "dogs" for this analysis. Let me also state that about 64% of these issues go on to make a new high (above the run up day high) within 12 months. However, it is foolish to think that a substantial pullback doesn't occur during the interim.