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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling

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To: millerme who wrote (3464)7/8/2001 1:05:06 PM
From: Michail Shadkin  Read Replies (1) of 6873
 
Millerme - Re: WBSN

Websense, Inc. provides employee Internet management products that enable businesses to monitor, report and manage how their employees use the Internet.

Insiders have been selling fast and furious here:
biz.yahoo.com

last 6 months 30 different insiders have sold a total of 3.20 million shares.

I wonder if they think the business is looking up!!!!

cap is 342 million
Cash is 4.22/share
price/sales is 16

estimate june quarter is breakeven
2001 estimate is +.05
2002 estimate is +.27

2002 forward PE is 64 based on very optimistic forecasts, especially in the current market environment.

They are basically break even right now, unless they warn.
With a very nice cash position.
Makes you wonder why the insiders are selling so furiously.

They do report their earning on a pro-forma basis.
Also, most of their revenue comes from deferred revenue (money paid in advance on 1-3 year contracts.)
Interesting that their deferred revenue only grew slightly year over year (once they show negative growth on deferred reveue, their business is dead)

50 day moving average is 16.96
very nice support at 15.00

I dont particularly like the chart for shorting, but I do feel that this is a $10.00 stock

Michail
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