OK, let's do it again-AXXel Knutson's tradingweapon.com new "Strong Buy" Rec...
December 8, 1999
AXXel Knutson's Flash Recommendation:
Ariel Corp [ADSP-9.44] Follow up Recommendation
Using, AXXel Knutson's
VTAR?
["Volume Trade Analysis Research"?]
"Manage the risk?the profits will take care of themselves"
"In this business, being right is not as important as making money?consistently, and one of primary tenets of the quest is the avoidance of the 'obvious risk'"
From AXXel Knutson,
EVP & Director, Institutional Equity Research
www.tradingweapon.com
a premium investor service of
Platinum Equities, Inc.
Member NASD & SIPC
80 Pine Street-32nd Fl-New York City 10005
Email: tradingweapon@aol.com
Telephone: 800-696-9002 or 212-271-0075 FAX: 212-271-0092
Platinum is not yet registered in the state of Maine & the Commonwealth of Puerto Rico and we are not currently in a position to service your investment needs in those jurisdictions. We clear our securities business through RPR Correspondent Clearing, a division of Dain Rauscher Inc.
Trading Engine? VTAR? [Volume Trade Analysis Research?]
Trade and service marked by and owned by Axxel Knutson and is licensed to Platinum Equities, Inc. under revocable license. ¸ 1999 all rights reserved, Axxel Knutson
Chart is courtesy of R.W. Mansfield & Co. *
We are recommending the immediate purchase of the common stock of Ariel Corp. [ADSP-9.44]. Here is our recent involvement with this stock for your review:
11/7/99: " Strong Buy" The consolidation of the move off the long-term base of $2-3 has been fully consolidated. The high in August was about $7.56. We expect a test of that number and we guess that it will be successful."
11/29/99: Ariel Corp. [ADSP-2.75] Now $37 + 34.25 = + 1,245% for the absolute best hit in VTAR? history even beating the $33 13/16 to $134 hit of UBID about a year ago. Anyone who didn't sell is likely smoking something especially with a $57 high. Here is one of those situations whereby instant communication was a negative because those who saw the price explosion early just sold too low?quite a move! I guess. Current recommendation: Buy the breaks and use as a trading vehicle only.
12/8/99: Strong Buy and build normal position here.
Ariel Corp. uses digital signal processing which is an enabling technology for such markets such as Remote Access Service and Internet Service Providers. ADSP is located at 2540 Route 130 Cranbury, NJ 08512
PH: (609) 860-2900 FX: (609) 860-1155
CEO: Jay H. Atlas
Cash on the balance sheet is about 2/3's all of all current liabilities. Long-term debt is a fraction under $4 million and the company is seeing losses. Current liabilities about 50% more than all of current liabilities. About 9.8 million shares outstanding and that figure has been stable?a plus.
You can hear a recent interview with ADSP's Senior Vice President of Marketing, Dennis Schneider. He was interviewed on RadioWallStreet Wednesday, November 24, 1999, and the archive is now available for replay, Investor Broadcast Network at radiowallstreet.com.
Although our initial recommendation may have stopped the stock from declining further from the $3.00 level, it was this news release that sent the stock flying and here it is for your review as well:
"Thursday November 25 4:19 AM ET
Ariel Shares Surge on Product Certification
By Kristin Roberts
NEW YORK (Reuters) - Ariel Corp. (NasdaqNM: ADSP - news) shares soared on heavy volume Wednesday, after the technology company said it won a worldwide certification on its remote Internet network connection product.
Ariel was the most active stock and the biggest percentage gainer on the Nasdaq, finishing up 7-3/16 at 10-3/4 with more than 47 million shares trading hands. It opened at 5-1/8 and touched a high of 13-1/2 -- well above its year-high of 7-9/16. Average daily trading volume for Ariel had been 235,415 shares, according to S&P MarketScope. The Nasdaq market was broadly higher, rebounding from Tuesday's negative showing. It closed up 77.63 points at 3,420.50, setting the 15th record in 19 sessions.
Early Wednesday, New Jersey-based Ariel said its remote access card set, RS4200, won certification for connection to international digital telephone networks.
That allows users to access Internet Service Providers, or ISPs, from remote locations.
``The RS4200 offers an amazingly low price, the lowest cost per port of any Linux- or NT-based remote access solution on the market today,' said Brad Baldwin, an analyst at International Data Corp.
``We expect open-architecture Linux- and NT-based remote access solutions like the RS4200 to be extremely attractive to fast-growing ISPs that need a flexible, low-cost way to build infrastructure,' he said.
The Ariel RS4200 product is used with Ariel's PowerPOP architecture, which is what the company calls a new approach to building Internet service provider infrastructure replacing dedicated servers with open architecture Linux and NT operating systems.
The PowerPOP architecture can reduce up-front equipment costs by consolidating functions like Web hosting and electronic mail onto a single Linux or Windows NT system, Ariel said.
The RS4200 remote access card product works with PowerPOP, giving the architecture the physical connections needed for remote dial-in. That lets users connect to the network from secondary locations.
Most trades in Ariel were small numbers of shares ranging from 100 to 1,000 shares. Trading in small chunks tends to indicate retail investor activity instead of institutional buying, which is characterized by the trading of big blocks.
Institutional traders noted they were not surprised by the run-up on Ariel's stock price. ``You're going to see more and more this insane rush to buy these speculative stocks,' one trader said, noting his firm was not trading the stock.
``There is a lot of speculative money around,' he said.
Traders in Nasdaq and over-the-counter stocks said they expect investors who made large sums in November's technology-led Nasdaq rally to use a bit of their profits to buy the riskier, cheaper stocks.
``People have made such huge profits on stocks like Qualcomm Inc. (NasdaqNM: QCOM - news), they have a good deal of money to throw into the secondary and tertiary stocks,' another trader said, referring to the wireless telephone technology developer whose stock has climbed from a low of $24.50 to a high of $406.125 this year.
Individuals on Internet chat rooms were talking up Ariel stock Wednesday morning."
Following that announcement, the stock headed for the $57 high and we issued our "...if you haven't sold, you are "smoking something" follow up.
But now with the stock having retraced nearly all that move from 7-57 [ADSP-$9.44], we are now recommending ADSP as a "Strong Buy"
Get it done.
Axxel Knutson, Director of Research
www.tradingweapon.com
A premium investor service of Platinum Equities, Inc.
New York City
DISCLAIMER
Investment decisions should not be based solely on our proprietary indicators, which are intended as an adjunct to your additional analysis. Please accept these comments as market commentary. We do not intend these comments to replace detailed fundamental analysis. We urge you to accomplish that additional research via your contacts on the Internet or through a trusted financial advisor. If you want additional information, we will give it upon your request.
This report has been prepared from original sources and company data we believe to be reliable, but we make no representation as to its accuracy or completeness. Additional information is available upon request. This report is published solely for information purposes. It is not to be construed either as an offer to buy or sell or the solicitation of an offer to buy or sell any security or the provision of or an offer to provide investment services in any state where such an offer, solicitation or provision would be illegal. Any opinions expressed herein are statements of our judgment on this date and are subject to change without notice and we may not update that change to you. Platinum Equities, Inc., its affiliates and subsidiaries and/or their officers and employees may from time to time acquire, hold, or sell a position in the securities mentioned herein.
The author of this report, Axxel Knutson, does not invest in any of the securities mentioned in this report nor does his immediate family unless such securities are included in mutual funds or index options. Equity investment involves risk of capital loss. We recommend that your portfolio be diversified by company size, industry group, geographic region and by currency.
It should not be assumed that future selections will be profitable or will equal the performance of past selections. Securities listed herein illustrate selections made using proprietary indicators know as VTAR? [Volume Trade Analysis Research?]. These names, VTAR?, Trading Engine?, tradingengine.com?, Volume Trade Analysis Research?, are servicemarks/trademarks of AXXel Knutson and are given under revocable license to Platinum Equities, Inc. ¸ 1999, All rights reserved, Axxel Knutson and Platinum Equities, Inc. Diversify. Got it?
All recommendations and commentary are directed toward sophisticated, aggressive traders who have significant experience trading in a volatile market and who possess the financial resources to risk a loss of some or all of their invested funds. Commissions, and if you use margin, interest charges will lessen any return on investment. VTAR [Volume Trade Analysis Research] centers around the proprietary analysis of trading volume, price, general fundamental analysis, beta concerns, group rotation and detailed analysis of risk as it relates to entry and exit points in highly liquid stocks. Control the risk?the profits will take care of themselves? AXXel Knutson
* The above chart is courtesy of R.W. Mansfield & Co., MANSFIELD STOCK CHARTS
2973 KENNEDY BLVD. JERSEY CITY, NJ 07306. Phone: 201-795-0629, Toll free: 1877-MANSFLD (626-7353) 9am-5pm (Eastern) Monday through Friday Fax: 201-795-5476
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