Path: utzoo!utgpu!news-server.csri.toronto.edu!rpi!usc!cs.utexas.edu!convex!swarren From: swarren@convex.com (Steve Warren) Newsgroups: comp.sys.amiga.misc Subject: Re: Comodore Stock (Ahhhhhrggggggggg) Message-ID: <1991Jun24.011602.2153@convex.com> Date: 24 Jun 91 01:16:02 GMT References: Sender: usenet@convex.com (news access account) Organization: CONVEX Computer Corporation, Richardson, Tx., USA Lines: 40 Nntp-Posting-Host: neptune.convex.com In article jc337s696@sycom.UUCP (Jeff Chmielewski) writes: >Well... I recently purchased some C= stock, because you know, I figured it >would be a good investment. But, within the last 2 weeks it has dropped about >3 points. AnyBody out there no why? From the content of the conversations on >the Net, it looked like commodore was doing really good. Hmm... Was the >power-up just a plot to boost poor american sales or something. Is CDTV not >working out the way they expected. Is the power up deal decreasing sales of >other amiga models, because of the sudden flood of used amigas on the market? >Jeff Chmielewski When IBM says they are hurting the mutual funds directors unload technology stocks. When the stock market is hick-upping downwards they start looking for some stocks to unload. Both these events occured recently. Almost all technology stocks dropped. This is expected because technology stocks typically swing much more wildly than other stocks. They drop precipitously when the market starts down, and they run up quickly when the market turns around. If you buy a tech stock right after it runs up, you are probably going to loose money. You should buy tech stocks in good companies while the market is depressed and the stock is ridiculously undervalued. Then after the market turns around the stock will respond much more strongly than other (non-tech) stocks, assuming that a host of other random factors have not intervened in the meantime. ;^) Usually tech stocks gain so much momentum on the upswing that they wind up *overvalued* for a brief period. Then they drop back down to a more reasonable price range after everyone figures out that the market is not trending upwards at the moment. That is what I think just happened to Commodore. The thing about stocks, especially technology stocks, is that there is no guarantee about what the prices will do, and usually price swings like this have nothing to do with anything the company has done. Some major player in the industry has major troubles, and everyone's stock will tumble. It happens frequently in computers. Wait long enough and the price will be back up there again. -- _. --Steve ._||__ Warren v\ *| V