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Content-Type: text/plain; charset=us-ascii Content-Transfer-Encoding: 7bit X-From: subscriptions@stockscape.com@ENRON <IMCEANOTES-subscriptions+40stockscape+2Ecom+40ENRON@ENRON.com< X-To: alewis@ect.enron.com X-cc: X-bcc: X-Folder: \Lewis, Andrew H.\Lewis, Andrew H.\Deleted Items X-Origin: LEWIS-A X-FileName: Lewis, Andrew H..pst Andrew, This free service is brought to you by Stockscape.com ( http://www.stockscape.com ) THE FAGAN REPORT / http://www.faganreport.com OPT-IN EMAIL SERVICE TRADE ALERT #12 INFORMAX, INC. / (NASDAQ - INMX) May 30, 2001 09:50AMET - emailed to TFR Trade Alert Subscribers NOTE - DELAYED DELIVERY: This information was previously distributed to Fagan Report Trade Alert Subscribers at the above noted time and date. Due to ever-changing market considerations - it may or may not be applicable at this time. TRADE ALERT #12 Speculative Buy / Informax, Inc. (Nasdaq - INMX) New, speculative buy recommendation on INMX at $5.20 with a target above $8.00 and a stop-loss at $4.10. Last Friday, May 25, Informax, Inc. (INMX) traded down to our revised protective stop-loss limit of $6.00, and the trade was closed out with a 50% gain. There is certainly nothing to complain about here, but still, I really didn't want to get stopped out of the INMX trade. It got me thinking about the discipline of always trading with stops in place, even when you believe the stock will eventually trade much higher than the stop-loss limit. These two trains of thought seem to be in direct contradiction with each other. They are, but only if you are thinking like an investor and a trader at the same time. I've covered this subject before (see PDF file http://www.faganreport.com/pdf/601Ctrading.pdf .) The Fagan Report Trade Alert Service is written specifically for traders, and I maintain that the use of trading stop-loss limits is essential to successful trading. Once in a while your stop-loss will whip you out of a good trade prematurely. But most of the time, it is going to make you more money than trading without it. In addition, traders have to always be on guard against being unintentionally turned into long-term investors. The diligent use of stops forces the trade. That's what trading is all about! If there's one luxury traders have, it's the ability to change their minds often. On-line trading commissions make this a painless almost costless proposition. It cost me $8.00 in commission to sell my INMX position and it will cost an additional $8.00 to buy it back. While stop-loss limits will occasionally cause you to lose some of a possible gain, for the most part they trigger a stop in the action, which forces the trader to rethink his assessment of the situation. That is exactly what happened with Friday's stop on INMX. After revisiting all the information that led to the initial buy recommendation on INMX on May 11, I still think it is going to trade higher than where we got stopped out. It's currently trading between $5.15 and $5.20. Nothing has really changed except the price (see PDF file ttp://www.faganreport.com/pdf/105sopdf.pdf for details). Therefore, I am initiating a new speculative buy recommendation on INMX at $5.20 with a target above $8.00 and a stop-loss at $4.10. NOTE / DISCLAIMER All information published by The Fagan Report is for informational purposes only. As Editor, I, Brian Fagan, tell you what I am or would be doing if I had sufficient capital to do so. You read and/or subscribe to receive this information for whatever personal reasons you may have to do so. Nothing more is implied or intended. Nothing in this communication is, nor should it be construed to be an offer or solicitation for the purchase or sale of securities. Please see our complete disclaimer statement at: http://www.faganreport.com COPYRIGHT: Fagan Report Trade Alerts are copyright material. It is unlawful to duplicate, forward, or disseminate this information in any form whatsoever, without the written permission of the publisher. For copyright waiver, email your request to: info@faganreport.com . Wishing you all the best, The Fagan Report, Brian Fagan ********************************************************************** THE FAGAN REPORT OPT-IN EMAIL SERVICE May 30, 2001 You have received this information because you have previously subscribed to The Fagan Report complimentary opt-in email service at http://www.faganreport.com . Through your participation in this program, you receive all information sent to paying subscribers of The Fagan Report, but on a variable time-delayed basis. This is an "OPT-IN" email service, the cost of which is borne in part by company sponsors. Today's content is independent research, opinions, and commentary. It is not company sponsored. No compensation of any kind has been paid or received for its inclusion in The Fagan Report. ---------------------------------------------------------------- The information being sent to you is intended as a free, value-added service. If you wish to unsubscribe to this publication please go to the following page and enter your e-mail address: http://www.stockscape.com/stockscape_com/unsubscribe/ChangeSubscriptions.cfm (If you are an AOL user and you wish to unsubscribe to this publication, please <a href="http://www.stockscape.com/stockscape_com/unsubscribe/ChangeSubscriptions.cfm"<click here</a<) Please be aware that Stockscape is a news service and NOT an investment advisory service, it is recommended that you consult with a licensed financial advisor before making any investment decisions. The information herein should NOT be construed as an offer to buy or sell securities. The information is taken from sources thought to be accurate but there is 0 guarantee. All due diligence should be done by the reader or their financial advisor.
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