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Well they're murdering Amazon today, it's tough out there.
Gary
-----Original Message-----
From: Jim Greening [mailto:jimginva@xxxxxxxx]
Sent: Sunday, October 24, 1999 3:06 PM
To: Metastock
Subject: Weekly Pick
All,
Ive been looking at the charts and finally decided on Amazon.com (AMZN)
for my weekly pick. As you know, AMZN was in the $100k portfolio when I
went to cash a few weeks ago. The story here is that I think it is
really set up to take advantage of the Christmas selling season with all
their new affiliate retailers. AMZN started as the worlds largest online
bookstore, but is rapidly becoming Earth's biggest online anything
store. ?xml:namespace prefix = o ns =
urn:schemas-microsoft-com:office:office /
AMZN at 78 5/8 is in a Short Term Up Trend Channel (STUTC) with the top
at 95 and the bottom at 72 5/8. Earlier in the year, it set an all time
high of 108.3 on 4/23/99. Then it went into a Short Term Down Trend
Channel (STDTC) falling to a double bottom of 41 on 8/5/99 and again on
8/10/99. It rose from there to break out of its STDTC on 8/17/99 and
established the current STUTC. It bounced off the bottom of that channel
for the second time a little over a week ago. Its a little further off
the bottom of the channel then I like. However, if I set the target just
under the old high at 108 and the stop just under the bottom of the
STUTC at 71 that gives a good reward/risk ratio of just over 4. Then if
I only purchase enoughshares to haveless than 3% of my portfolioat risk
(risk = (current price minus stop price) times number share owned) I'm
well within my trading rules. The Tema StochRSI 13 is negative, but
rising and the Tema Stoch 55 is well into positive territory. That
usually suggests a good entry point. The fundamentals are typical of an
internet company bad G. The earnings are negative, the debt/equity is
high at 2.54, and the price/sales is an extremely high 21.59. Offsetting
the otherwise bad fundamentals is a fantastic revenue growth rate of
almost 200% per year. I expect this will continue and AMZN should have
an extraordinary Christmas sales season.
See chart at http://www.geocities.com/jimginva/
JimG
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