How To Write Covered Calls - An Ongoing Real Case Study! Message Board

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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: JimsJeeps who wrote (11077)	6/19/1999 11:24:00 AM
From: Herm	Read Replies (3) of 14162

BTGC Weekly Chart View Nice clean looking profile over the past three years. The current year resembles 1996-97 price movements of higher highs and higher bottoms in an upward price channel to the peak price of around $18 in Jan. 97. Throughtout 97 and 98 it was a slow downward zig-zag to the $5.00 dead bottom in late 98. That is when I picked up BTGC. I have been adding to the pot. From that bottom in late 98 it looks exactly like the 97 upward zig- zag price channel. Clean upper and lower tags of the BB. Right now, BTGC is completing the downward tag most likely this week and should reverse upward. BTGC RSI reached a low of 22 at the $5.00 bottom in 98 and it has since climbed and remained above 48 and currently at 55.59. The upward gap in 1997 had an RSI above 50. So, I would say BTGC is capable of developing enough strength at current levels to propel it pass the $8.00 stone wall price resistance this time around. According to the data at stocksmartpro, 74 Institutions hold 29.66% of the outstanding shares as of March 31,1999. Of these, 10 established new positions while 4 liquidated their holdings. Overall, Institutions increased their holdings by 102.02% for the period. BTGC EVENTS AND FAIR VALUE BTGC is still selling at a 45% discount (P/E 16.8) to the industry group (P/E 30.7) with an annual growth rate of 25%. Earnings is due out July 21, 1999. No pre-announcements have been made and it is safe to assume the E.R. is right on target. With an earnings of .41 (est.1999) X 16.8 P/E = $6.89 stock price. If BTGC increases towards the normal industry P/E of 30.7 it would bring the price up to .41 X 30.7 =$12.30. Now, there is that outstanding BTGC law suit that is picking up momentium in BTGC' favor. They are finding truth to the counter-suit by BTGC as reported in the new lately. That would make a difference if they could market that patent in this country. Not to mention, the three new patents that have been approved and in the pipeline. It may be possible to have more than a 25% growth as expected this year. 4 Analysts are now covering BTGC with 1 strong buy and 3 buys. Your planning is right in line Jim! I would be looking to cover within the next week or so, average down some more, and then hold!

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