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

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To: Michail Shadkin who started this subject5/9/2001 11:47:37 PM
From: Michail Shadkin   of 6873
 
RRRR - my target and reason why I feel its a great play

1. Very nice cash position 2.48/share. they are trading below cash.

2. RRRR is a profitable company. (pro forma, but still great
increasing profits the last 4 quarters despite the economy.
profits are expected this quarter, year 2001 and year 2002.

3. RRRR has a great history of blowing away the estimates
Q1 2000 -.05 vs -.06
Q2 2000 +.01 vs -.03
Q3 2000 +.04 vs +.01
Q4 2000 +.06 vs +.02

4. All the internet companies are beating estimates this quarter and moving higher afterwards.

5. Earnings release timing couldnt be any better. The market usually rallies into all FOMC meeting, especially day before and day off meeting. RRRR will report monday, FOMC is tuesday. The market will help move RRRR

6. Book value 3.66

7. Debt is ZERO

8. XMSR run is helping RRRR (see posts 413 and 414)

Over the next few days I will be adding significantly to RRRR position (probably for a total of 1.50 to double position)
I fully expect them to top estimate of +.01 for the quarter, probably +.04 to +.05

My short term target is around 3.

If ICGE can loss 66 cents for the quarter and move up in AH to 3.45, why cant RRRR go on a run.
ICGE cap is 875 million
RRRR cap is 109 million

Good Luck
Michail
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