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Technology Stocks : Viasoft is an excellent stock, but what about the company?

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To: damniseedemons who wrote (34)12/10/1996 10:48:00 PM
From: Philip H. Lee   of 169
 
Cruttenden Roth also reiterated a "Strong Buy" on DDIM the same day by doubling '97 EPS estimates to 2.00 and establishing '98 estimates of 4.00, which may have added to the Y2k advance. You might want to be careful with your VIAS short, since Y2k media coverage shoots up around New Year's Day.

I hope you know what you're messing with, because Y2k media coverage will get very intense. In addition, VIAS will post spectacular quarterly earnings sometime in 1997. I read that they plan to raise prices in January by 30-40%; those added profits will boost EPS. Once they raise prices, investors will begin to price in possible price hikes in late 1997 or in 1998.

If VIAS splits again, the stock will go up even further like it did last time, and like ZITL just did. Moreover, there are a plethora of other shorts who share your opinion but may be forced to bail out because of mark-to-market. And don't forget that market makers have been known to be merciless to shorts on the upside. Good Luck,

Philip
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