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					                           Index




                                                AL
                                            RI
Access, 87                         Bank accounts, 75



                                        TE
Accounting firms, 69                Bankruptcy, 27–28, 53
Active trader, 7                   Bank trust departments, 20
                                   MA
Aduddell Industries, Inc.          Baruch College, 103
     (ADDL), 127–129,              Bear raid, 13
     132–133                       Bidding up shares, 104
Advice, getting and giving, 3–6,   BigCharts.com, 37
                             D

     36, 70–71, 166                Biotech companies, 152, 153
                         TE


Airline stocks, 157–159            Biotech stocks, 19
Alcatel, 23                        Bluefire Associates, 106
                   GH




Amazon, 104                        Boiler rooms, 165
American Airlines Corp. (AMR),     Boredom, 81
     157–158                       Breaking the back of a
               RI




American Express, 164                  stock, 16
American Stock Exchange            Brokerage firms, 19, 20,
          PY




     (AMEX), 7, 141, 142, 154          76–78, 130
Amgen, 153                         Broker-dealer, 3, 12
     CO




Amsterdam Stock Exchange           Bucket shops, 165
     (Beurs), 86                   Budweiser, 164
Analyst, 5, 7, 15, 25, 71, 91      Buffett, Warren, 164
Aptimus, Inc. (APTM),              Bulletin board, 34, 144
     109–121                       Business condition, 13
  initial public offering, 114     Business media, 90–91, 140
  tender offer, 114–115,           Business news, 113
     117–119                       Buy-and-hold strategy, 4, 75
Assets, 53, 54, 151                Buybacks, 13, 112–119


                               169
170   Index

Buying, 85, 137                 Day-trading, 5
Buying power, reserving, 81     Dealers, 129, 130
                                Debt, 13, 53
Call options, 60, 61            Decimal pricing, vii
Canada, 86                      Delta Air Lines, 159
Capitalization, 13, 57, 101,    Desirability of company, 111
     111, 152                   Diversified portfolio, 18, 155
Carbontronics, 144              Downside exposure, 117
Cash holdings, 13, 151–153      Downside trading, 7
Certificates of deposit (CDs),
     8, 75, 88                  Electronic access, 4, 36, 137
Chapter 11 bankruptcy, 143      Electronic communications
China, 33, 86                       network (ECN), 77, 78, 105,
Clean shell, 54, 55, 125            116, 128
Clinton Administration, 143     Electronic sorting and scanning
CNBC, vii, 89                       systems, 37
CNN, 91                         Electronic trading, 3, 5
Coca-Cola, 7, 164               Employee stock ownership
Cohen, Steven A., 93                plans, 152
Commodity exchange, vii         England, 86
Common stock, 113               Equities markets, 4
Compensation, 113               Exchanges, vii, 7
Computerization, 167            eXegenics, Inc. (EXEG),
Computerized order entry            149–151, 154
     programs, 130              Experts, Wall Street, viii, 15,
Continental Airlines, 159           97–98
Conventional investing, xiii
Conventional wisdom, 1–8,       Fear, 79
     71, 75                     Field of business, 13
Convertible bonds, 126          Financial media, 88–91
Corporate structure, 111,       Financial statements, 113
     126                        Fisher, Mel, xi
Corpses, 153                    Forbes 400, 150
Covered call writing, 61, 62    Ford, 7
Creditors, 53, 54               Forgotten companies, xii
Cytoclonal Pharmaceuticals,     Forgotten stocks, 15, 125, 167
     149                        France, 86
                                                     Index       171

Fraud and abuse, 69, 73–74,      Intel, 7
    87–88                        Internet companies, 101
FREESHOPS, 114                   Internet meltdown, 13, 69,
Frost, Dr. Philip, 150                100, 126
Fund manager, 24                 Internet stocks, 19, 100–103,
                                      117, 126
Gains, 21, 85
                                 Intraday price fluctuations, 5
Gencor Industries, Inc.
                                 Investing, 5
    (GENC), 141–145
                                 Investment-grade stocks, 21
Genentec, 153
                                 Investors, 85
General Electric, 7
                                 Ivax, 150
Germany, 34, 86
“Going private” attempts, 13     Japan, 86
Golf Warehouse, 108              Johnson & Johnson, 164
Greed factor, 32, 79, 126        Joint ventures, 152

Hedge fund, 6, 92                Key Pharmaceuticals, 150
  and volatility, 93
                                 Large-cap stocks, 14
High-speed information flow, 4
                                 Levitt, Arthur Jr., 87
High-water mark, 94
                                 London Stock Exchange (LSE),
Holland, 86
                                      34, 86
Hot tips, 4
                                 Lone Wolf Energy, Inc., 128
Hurricane season of 2004 and
                                 Long-term equity anticipation
    2005, 131–132
                                      securities (LEAPS), 64
India, 86                        Low-priced stocks, 13–14,
Industry status, 13                   15, 18
Inflation rate, 75                Low-priced value investing, xii,
Information, dissemination            11–12
     of, 137                     Low-priced value stocks (LPVS),
Information sources, 36               xii, xvii
Initial public offering (IPO),     as alternative to mainstream
     69, 114                          investing, 71–72
Inside information, 6              criteria for, 12–13
Insider purchases, 13              discovering candidates, 31,
Insiders, 137, 138, 154               35–49, 71, 111, 163
Institutional investors, 24–25     and institutional investor,
Insurance companies, 20               24–25
172   Index

  understanding, 18–19             Money managers, 24–25, 92, 94,
  versus conventional investing,      165
    20–24                          Money market funds, 8, 75
Lucent Technologies, 23, 27        Morgan Keegan & Co., Inc., 145
Lynch, Peter, 156                  Murdoch, Rupert, 91
                                   Mutual fund(s), 6, 20
Management, 135–145
Management apathy, 13, 15          Naked call writing, 61–63
Management stock purchases,        Nano-cap stocks, 14, 165
    13, 113, 114–116               Narrow-range trades, 7, 21
Marcus, Joel, 153, 154             Nasdaq National Market, 7, 19,
Margin, 82                             20, 57
Marketable securities, 151         National Association of
Market access, vii                     Securities Dealers (NASD),
Market capitalization (market          vii, 13, 35, 103, 130
    cap), 14, 24, 140, 165         Negative events, 26
Market conditions, 15              Neutral stocks, 7–8, 21
Market cycle, 18                   Neutral zone, 6
Market letters, 34                 New management, 13
Market-maker interest, 13, 15      News, financial, 89–91
Market makers, 16, 119–120,        News releases, 113
    129, 130                       New York Stock Exchange
Market-making, vii                     (NYSE), vii, 7, 28, 130
Market-making community,
    102–103, 119                   Olen, Gary, 99
Market manipulation, 13            Opko Health, Inc. (OPK), 149,
Market-out clause, 118                  154
Marketplace, overview of, 83–94    Option contracts, 60–63
 history of, 86–87                 Option premium, 60–62
Market reforms, 4                  Options, 58–63, 86, 113
Media, financial, 88–91             Options straddling, 61
Mega-cap stocks, 14                Options strategies
Mergers, 54–55                       spread, 63
Micro-cap funds, 24–25               straddles, 61, 63
Micro-cap stocks, 14, 165            strangles, 63
MicroStrategy Inc., 58             Over-the-counter (OTC) trader,
Mid-cap stocks, 14                      129
                                                        Index     173

Panic, 79                          Research and development
Patience, exercising, 78–81            (R&D), 149, 153
Penny stock promoters, 32–35       Research departments, 20
Penny stocks, 11, 13–14, 16–18,    Restricted shares, 126
      25                           Reverse splits, 56–58
Pension plans, 152                 Rewards, 5
Pfizer, 7                           Rights, 126
Pink sheet, 34, 42, 144            Risk, 5, 75, 80
Pitt, Harvey, 87                   Risk evaluation, 27
Playing field, viii, ix, xiii, 49
Playing the market, 8              SAC Capital Partners, 93
Portfolio managers, 16             Salesmen, 33
Portfolio performance, 24–25       Sarbanes-Oxley Act, 55, 140
Position, establishing, 104–107    Savings accounts, 88
Preferred stock, 126               “Sealed mouth” strategy, 72–73,
Price, of stock, 12, 80, 111            79
Price appreciation, 6–7            Securities and Exchange
Price-earnings (P/E) ratio, 13,         Commission (SEC), 13, 34,
      130                               35, 77, 87, 112, 130, 142, 144
Priceline.com, 58                  Selling, 85, 127
Proctor & Gamble, 164              Selling short, 16, 86, 120
Profits, 80, 85, 117                Share price collapse, 13
Promoters, 126                     Shell rebirth, 13
Public float, 117–119               Short position, 16
Publicly traded corporation,       Short squeezes, 6, 16, 120
      111, 125, 126                Simmons, Jim Harris, 93
Public shells, 54–58, 125–127      Sinking funds, 113
Puts, 60, 61                       Small-cap Nasdaq stocks, 34
                                   Small-cap stocks, 14, 165
Rate of return, 117                Specialists, 129, 130, 165
Regulation, 166                    Speculative stocks, 19
Regulators, 19, 70, 87, 130,       Speculators, 85
    139–140                        Sportsman’s Guide (SGDE), a
Regulatory announcements, 6             classic LPVS, 95–108
Regulatory compliance, 13          Spreads, 61, 63
Renaissance Technologies           Stock analysts, 5, 7, 15, 25,
    Corporation, 93                     71, 91
174   Index

Stock exchanges, vii, 7           Wall Street “experts,” viii, 15,
Stockholders, 55                       97–98
Straddles, 61                     Wall Street Journal, 91
Strangles, 63                     Wal-Mart Stores, 22
                                  Warrants, 59–60, 63–65, 126
Tacit collusion, 93–94            Western Electric, 23
Take on the Street (Levitt), 87   Worldquest Communications,
Tender document, 113, 116              155
Thinly traded stocks, 76–78       WQN Inc. (WQNI), 154–157
Tout sheets, 34                    chart, 156
Traders, 85, 129, 165
Trading, 5                        Yahoo! Finance, 38–49
Trading volume, 12                  Analyst Opinion, 41–42,
Transparency, vii, 86                 43
Treasure hunters, xi–xii            Charts, 47, 49
Trump Hotel & Casino Resorts,       Headlines, 39–40
    Inc., 28                        Historical Prices, 45–46,
Trusting brokers, 4                   47
                                    Insider Transactions, 44, 45
Uncertainty, 79                     Key Statistics, 41, 42
Uncovered call writing, 62–63       Major Holdings, 46–47, 48
Underwriters, 13, 15, 100, 121      Message Board, 44–45, 46
United Airlines, 159                Profile, 40–41
United States, 86                   SEC Filings, 42–43, 44
Upside gain, 117                    Summary, 38–39
Upside potential, 7, 20, 21, 27
                                  Zenex International, Inc.,
Valuation of shares, 139              128
VectorVest.com, 37                ZENX shares, 130–133
VOIP, Inc. (VOIP), 156–157        Zenex Telecom, Inc., 128
Volatility, 91–92                 “Zero tolerance for loss”
  hedge funds and, 93                 technique, 12

				
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