Subject: Investment Newsletter - October 22, 2000

Volume 1 No. 7 October 22, 2000

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1. Market Overview ==> "Hold on to your hat"
2. Week in Review ==> "Finally, a positive week"
3. Upcoming Week's News
4. Investing Web-site of the Week =>""
5. Stock of the Week =>"EMC"'
6. Stocks to Watch  =>"OSI"
7. Strategy of the Week  =>"Indexing"
8. Book of the Week  =>"Beyond Candlesticks"
9. Articles of the Week
10. Wizard's Quote of the Week =>"How's the CEO"
11. Future Trends ==> "Home Automation"
12. Monkey Picks ==> ""
13. Hot Links
14. Ask Us a Question ==>"What makes stocks go up?"
15. Disclaimer
16. Miscellaneous


Weeeeee! What a ride. One thing this market shows you is that nothing is guaranteed.  We really don't know what's up ahead for us, and if you need your hard earned cash soon, then you shouldn't be investing in the stock market. Over the short term the market is very, very risky. But if you are a long term investor, the market has just about guaranteed to give you a positive return over the course of a 20 year period. This market also demonstrates the danger of margin and not diversifying your portfolio. Our primary focus in this newsletter is technology stocks, but make sure you have some diversification in your portfolio.

Have we hit a bottom? I hope so, only time will tell. On the positive side the psychological support levels of 3,000 for the Nasdaq and 10,000 for the Dow were basically held, and earnings are good but some companies haven't done so well. The tech stocks have rocketed back as we previously predicted with 2 days of over 7% gains. Good earnings from Microsoft, Sun Microsystems and Nokia helped propel the market upward.. On the negative side, the market rallies are coming on lower volume. You'd like to see rallies occur on higher volume. Also, the number of stocks hitting new highs on the Nasdaq exceeded new lows on Friday which is a bullish sign. If the Nasdaq can break through the 3521 resistance barrier, and we can get a follow up rally to the rally on Thursday on the 25th through the 30th we should be in good shape.

The Nasdaq was up for the previous week for the first time in 7 weeks. For the week, the Dow was up 34 points or 0.34%, the Nasdaq was up 166 points or 5.02% and the S&P 500 was up 22.8 points or 1.66%. The Nasdaq had three down days and two up days with support at 3000 and resistance at 3535.. Thursday was a great day with the Nasdaq up 7.8%. If you view chart below Monday is neutral, Tuesday bearish, Wednesday neutral, Thursday extremely bullish and Friday is bullish. Tuesday, Wednesday and Thursday form a "Morning Star" which is a bullish reversal pattern.

Chevron and Texaco Agree to $100 Billion Merger Creating Top-Tier Integrated Energy Company

Best Index for Safety? Maybe the Dow

Greenspan Upbeat on Productivity, Oil

Nokia to the Rescue

Sun: 'We're Firing on All Fronts'

AMD Blazes Ahead With 1.2GHz Amd Athlon Processor and 800MHz AMD Duron Processor

Qualcomm Strengthens China Foothold

Beyond the EMC Numbers

AMD moves further ahead of Intel with chip

Identix Sends Fingerprint Kits to Microsoft

Microsoft Rallies on Profit Surprise

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SEC's full disclosure rule goes into effect this week. This rule forces corporations to disclose information to the public at the same time it discloses it to its clients.



Some Upcoming Earnings
For complete list, see

Interesting Upcoming Stock Splits
LEH - Lehman Bros.
ADBE - Adobe
DNA - Genentech
HWP - Hewlett Packard

For complete list see

Lockups Expiring


Economic Calendar


Our web-site of the week is This site gives you a analysis of a stock you are interested in based on three criteria, value, safety and timing. Go to the site, click the "Free Stock Analysis" button on top and enter a stock.

If you'd like to nominate an investing site as our "Investing Web-site of the Week" reply to this newsletter with the subject "Site of the Week"

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This report is dated 10/22/00

Our stock of the week is not a recommendation to buy or sell, just an interesting company you might want to follow. Please see our disclaimer at the end of this newsletter.

Our stock of the week is EMC Corp. ticker (EMC). EMC's home page is at Get a quote for EMC at

EMC builds the world's most robust, secure and trusted information storage infrastructures. Their storage systems, software, networks and services ensure fast, round-the-clock access to all of the information businesses and individuals must have to prosper in the Information Economy. To EMC's customers, EMC is the caretaker of the world's information. Stock has held up pretty well during this market correction.

If you invest in this stock please use only an amount you are willing to lose as it is risky. Stock is currently MACD up-trend which is good and above it's 50 and 200 day moving average which is good. If you do enter it you should cut your loses at 8% of your original investment which is a stop price of $92 at its current price of $100. Stock is up 13% in the last 3 months, up 52% in the last 6 months and up 207% in the last 12 months and its performed worse than stocks in its industry group over the past 3, and 6 months and better over the past 12 months.. Its 52-week high is $104 15/16 and it's currently trading at $100 which is 4.7% from its high. Resistance at $105 and support at $90. According to their 10Q there are no legal proceedings against EMC which will have any adverse effect on the companies business. Their revenues for the previous 12 months were $8.1 billion with $1.4 Billion in income.  One year sales growth of 66% and income growth of 49%. rates EMC as a "B" for Growth, "A+" for profitability, "A+" for financial health, and a "C-" for valuation which is an Good rating but a little overvalued. rates 40% short term buy, 75% Medium term buy and long-term 67% buy which is good. Stock has a 1.36 rating on Yahoo, which is excellent. VectorVest rates it poor value, very good safety, excellent timing. for an overall rating of very good and they have a buy recommendation on the stock. To do a complete analysis go to


It has a high P/E ratio relative to its peers. Stock is overvalued, and the Nasdaq has been performing poorly. Technology risk if competing platform takes market share away. Sun Microsystems is trying to get market share from EMC. Another risk is that it's approaching $100 and a lot stocks come under strong resistance at this price.

Click below for research link on EMC:

* Motley Fools at
* Money Central at
* at
* at
* at
* at
* Yahoo at
* Second Opinion at
* Thomson I-watch at
* Raging Bull at
* 10Q at
* Broker Reports at
* Momentum report at
* Vector Vest at
* Price History YTD:
* Previous News:

Please note that author doesn't own shares of this stock.

YTD (Year-to-date) Chart

If you'd like to nominate a "Stock of the Week" reply to this email with your stock pick.

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Outback Steak house.(OSI) - We had horrible food and horrible service at the Westbury, Long Island, restaurant, long waits makes this a possible short candidate. Let us know if you've eaten there and what your experience was. Reply to this email with the subject "Outback" . If you've had a bad experience with a company or product, let us know by replying to this email with the subject "ShortIt".


In this strategy you attempt to match an indexes return. This strategy will get you the return of the S&P 500. There is a stock SPY which tracks this index. You can also index to the Nasdaq via QQQ and the Dow Jones via DIA. You can also trade with a countries index. called WEBS. See

Our book of the week is "Beyond Candlesticks" by Steve Nison. Internationally recognized as "The Father of Candelsticks," Nison introduces even more powerful yet subtle Japanese charting techniques that have never been published or used in the Western world before. Detailed charts and graphs take readers step-by-step through each charting technique. These versatile techniques can be used for equities, fixed income, foreign exchange and overseas markets. See reviews or purchase at

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CPI: Reading Consumer Inflation

Don't Jump at Biotech IPOs

Intel vs. Advanced Micro

Investors Cherish All That Fits in Palm of Hand

20 Stocks Worth a Closer Look

Dangers of Overpaying

Biotech's Fatal Attraction

A New Attempt to Out-Napster Napster,1653,8739,00.html

10 Stocks Under $25 - November 2000

Tech Fund Pros That Can Pick ‘Em

Wanna Short Amazon?


"How's the CEO"

How is the CEO of the corporation you are investing in. Is he or she a dynamic speaker and motivator? Is he or she overpaid? Is this person a visionary leader? Attend a stockholders meeting if you can, it's always nice to know who's managing your money.

Ask the Stock Wizard a question at
Want to automate your home. A company called Echelon plans to be a part of this. See their web-site at Turn on lights, open-close the blinds, soon TV and stereo at

Our Monkey has picked the following stocks for the week of October 22, 2000

INFT - Inforte Corp
ECIL - ECI Telecom
UPC - Uniion Planters
AJG - Arrhur J Gallagr
ATW - Atwood Oceanics

Get a quote at yahoo here

You can visit our monkey at

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* Stock Picking Monkey:
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Why do stock prices move up or down?

The price of a stock moves up or down based on supply and demand. Market Makers (Specialists on the New York Stock Exchange) make money by trading on the spread. Market Makers are the companies who buy or sell the same stock and make a profit on the difference of the price. The spread is the difference in the price they buy a stock from you and sell it to someone else. Market makers want to have an equal number of buyers and sellers to make the most profit with the least risk. If they are buying a stock like Microsoft from you at $60 they want to know they have someone to sell it to at a higher price like $61. If there are more buyers than sellers the market maker will raise the price they sell the stock for to try to keep the number of buyers and seller equal. This allows them to make the most profit. So it the free market of supply and demand that causes the prices to move up or down.



We are not responsible for any losses or profits that may result from the application of information contained with this website or newsletter. This site and its owners are not registered Investment Advisers nor a Broker/Dealer. This site is issued solely for informational and educational purposes only and is not constructed as an offer to sell or the solicitation of an offer to buy. The information provided on this site is in no way a verification of the methodology used for stock picking by the site or guarantees the accuracy of the information, that is your responsibility. The opinions and analysis included herein are based from sources believed to be reliable and in good faith but no representation or warranty, expressed or implied is made as to their accuracy, completeness or correctness. The inclusion of a link to a site does not, in any way, represent or imply an approval of, or a determination of the quality of that product or service, by The links provided herein are maintained by their respective organizations and they are solely responsible for their content. Users agree to hold harmless for any and all damages arising out of use of this service.  Users are urged to consult with their own independent financial advisors with respect to any investment. All information contained in this report should be independently verified with the companies mentioned. The data and materials are provided by on an "AS IS" basis. Purchasing securities is risky.  You may lose some or all of your investment.  Past performance is no guarantee of future performance. and its owners may invest in the companies that are profiled. We reserve the right to buy or sell any of these profiled stocks before and after they are posted to the site or recommended.

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