The Hampton Letter
 

 
A place for investors to swap investment thoughts.
 
 
   
 
Friday, August 29, 2003
 
I was thinking of QCOM but it was out of my price range to be able to acquire a good amount of shares. I am sour on MOT due to the fact that I saw them spend lots of money on construction projects around 5 years ago without caution but that is a personal thing. It was good for the construction business but it seemed like they went overkill on construction then the market got hard for them. Plus you are right about broker calls - they are late to the game. Can you imagine how many boxes of cigars and sports events the broker analyists attend probably for free? This wouldn't be a reason to not buying them. I am watching ET and SCH. I was thinking about getting back into LEXR for a little while. Also was thinking of getting out of TD Waterhouse. Their online system is not too impressive. Maybe go with suretrade or e-trade? Have a good holiday. We are going gambling Sunday (blackjack/slots).... Talk about risk. I have also playing texas hold-em online with fake money online at pacificpoker.com

Wednesday, August 27, 2003
 
Well here I go again doing strange things. I usually do not do 'name' stocks. I leave the big stocks to the big boys. However, following Andy's brokerage stock (ET) and seeing it forming what looked like a good shorting pattern caused me to look at other brokerages. Walla! Several seemed to have the same look about them. A head and shoulders topping pattern. Then narrowing my search by dollar value, looking for something in my price range, I got down to ET and ....... SCH. ET was less expensive (at $8.50 or so) but did not have as far to fall to reach substantial support. SCH, however at about $10.75, was still inexpensive and had a pretty good drop to its closest strong support line around $8.00. That represents a 25% profit for a short position in a projected very short time frame (two to four weeks). So.... I am short SCH with a stop loss up at 11.25 and a goal of covering at $8.25 or less.
That is not all. I heard a major brokerage call a top on Motorola (MOT) today, just as I am looking at what appears to be a breakout thrust development on its chart. I like brokerage buy recommenations on the way up. They really support the climb. However, it is my observation that brokerages ALWAYS call the top to late usually with a "market perform" rating and a "topping" call is very often just plan wrong! So... I bought MOT today. The pattern is classic preparation for a breakout up thrust. A very close stop should work. If it breaks out, it could double. If it fails you will know very quickly.
Finally, I also bought QCOM based on a very similar attractive pattern. Almost a perfect copy of MOT. Take look and give me your thoughts.

Tuesday, August 26, 2003
 
Sold UCOMA today and will sit out awhile with the money market until something smacks me in the face.

Monday, August 25, 2003
 
Andy, I can't figure out UCOMA with this buy out thing. When I can"t figure it out - I get out. Got a huge profit. Why not get on the sidelines for a while.
 
Thanks. Was thinking of selling and sold ET today for 65% gain. Need to raise some $ anyway. Bert, sound like you have your priorities correct.... What is your take on the UCOMA buy out?: "Liberty Media Corp. (L,Trade) said on Tuesday it would acquire control of UnitedGlobalCom (UCOMA,Trade) by exchanging about $145 million of its shares for all the Class B shares held by the founders of the global cable provider. "

Sunday, August 24, 2003
 
Andy - ET looks really bad! It has all the ear markings of a major pull back in the very very near future. You should have a tight stop or better yet just get out for a while.

 

 
   
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