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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Anaxagoras who wrote (7755)	5/31/1999 9:55:00 AM
From: Capt	Respond to of 8307

I agree, the volume has picked up....this last week has been the highest since the week of April 12. chart.yahoo.com

To: Anaxagoras who wrote (7755)	6/1/1999 7:53:00 AM
From: Kip518	Read Replies (2) \| Respond to of 8307

Volume up Normally this wouldn't mean much, however today should have been lighter than normal because of the holiday; this is the first bullish trading I've seen for a while. Been away for a week and just got back to look at EGGS. Seems like it's performing as expected (why I don't currently have a [short] position is provoking me to consider market psychotherapy). My guess is that EGGS will stabilize when shorts start covering with size. Friday may have been some of that. However, I certainly wouldn't hold out any hope that EGGS will turn around quickly. The downward pressure is still powerful and the anti-ecommerce forces (seasonality & collapse of big guys, especially AMZN) is unrelenting. IMO, if EGGS were to suddenly spike down to 6-8 range it's a trader's buy, or spike up to low 13's -- a trader's sell. But slow trading is likely only to produce a prolonged bottoming or continued attrition...which seems most likely to me. I still believe EGGS is headed for a retest of lows this summer. As for the argument that XMAS will re-established the e-commerce hype and send EGGS to the sky one more time, I'm skeptical. Not that internet hype won't begin again (and cover most of the biggies & newbies) but that won't make EGGS a flyer. There are a lot of reasons: profitability is a long way off (if ever), EGGS is getting to be an old story as more and more competition piles in, operational financing through secondaries will become particularly difficult for tarnished net stocks (including EGGS), insiders will continue to sell as their stock is bought with still more cheaply, and some e-nutz will start failing (probably not EGGS, at least right away) making investors more nervous about the sector. Still, IMO, EGGS can remain a trading stock as long as online investors like the company (e.g. by being satisfied customers, etc.) but increasingly, over time, there is greater and greater probability that EGGS will simply become dead money.