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Jim, did you close your position in GMH since it went below your initial stop?
Jan
Jim Greening wrote:
> All
> This was an interesting week in which I added AOL, AMZN, and ATHM to my
> portfolio and was stopped out of AMZN and RDC. I hate to add a stock and
> delete it in the same week like AMZN, but I guess that's the way the system
> works and it has been successful for me. The good news is that my portfolio
> is up again for the week. As long as that continues to happen I won't
> complain -- too much <G>.
> January is over and so is my experiment with the small cap beaten down
> stocks for the January effect. The only one I have left in my portfolio is
> MDM which is up a little over 20%. Along the way I closed COHU for a 11%
> gain, ROW for a 10% loss, IDTI for a 6% loss, SDTI for a 80% gain, SIF for a
> 15% gain, SHRP for a 15% loss, and RDC for a 27% loss. That's not bad
> overall, but we didn't have any of the triple digit gainers I was looking
> for. Looking at the indices, it still seems that the market is favoring the
> large cap, solid earning, market leaders, so that's where I'll concentrate
> except for a few bottom fishing expeditions that I can't seem to resist <G>.
> For example, I'm still watching the oil stocks for their long awaited turn.
> I'm still a little concerned about the way the DJI is acting, as it
> keeps falling below the bottom of its Short Term Up Trend Channel (STUTC)
> and then crawls back up into the channel only to fall through the bottom
> again. The result of this action is that it is paralleling the bottom of
> the channel up which isn't all that bad, but I would feel better if it would
> climb back into the channel and stay. To offset that we have the NASD OTC
> Index which keeps setting new all time highs. To me, that means I should
> continue to cautiously add long high tech momentum type plays. However, I
> have enough Internet exposure and wanted to look into some other high tech
> areas this week. I think that I've done that by finding Hughs Electronics
> Corp (GMH).
> Hughes Electronics' operations are overflowing with space. This
> publicly traded commercial electronics unit of General Motors (GM) is
> charting the heavens to establish itself as the market leader of the
> commercial satellite services industry. It has made almost 40% of the
> world's commercial satellites currently in operation, transmitting
> everything from telephone calls and video conferences to TV news reports and
> TV programming. Its subsidiary DIRECTV is the largest satellite-TV
> broadcaster in the US, offering more than 185 channels of programming to
> more than 3.6 million customers. Its equipment arm is a top supplier of
> wireless phone networks and cellular mobile systems. It also owns 81% of
> PanAmSat, a 17-satellite (with six more expected by late 1999) global
> network and supplier of satellite-based business networks, and is developing
> SPACEWAY, a global geostationary spacecraft system providing business and
> consumer telecommunications services. It has been divesting its other
> electronics interests to focus on communications.
> GMH at 49 1/4 is in a well defined STUTC. I constructed the STUTC from
> the 12/18/98 low to the 1/18/98 high using the MetaStock Standard Deviation
> channel. The top with the deviation set at 2 is 57 1/8, the bottom with the
> deviation set at 1 is 48.92. GMH made an all time high of 57.88 on 5/13/88
> and then went into an intermediate term down trend to a low of 30.38 on
> 10/08/98. From there it recovered and pulled back again to the 12/18/98 low
> then moved steadily up and broke out of the down trend channel on 12/31/98.
> It then went on up to define the current STUTC. The Tema Binary wave and
> Qstick are both positive and rising with the Binary Wave making an
> especially strong showing. The fundamentals are OK with the price /sales a
> little high at 8.97, and debt/equity great at 0.09. It's sales and earnings
> have been negative as it shed its other businesses, but the recent strong up
> move suggests that most of that is behind it and the decks should be cleared
> for new growth. I'll open a position some time Monday. I'll set my initial
> target just under the top of the STUTC at 57 and my stop just under the
> bottom of the STUTC at 48 3/4.
> I'll send a GMH.GIF chart to everyone on my email chart list.
>
> JimG
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