Pump's daily trading recs, emphasis on short selling Message Board

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

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To: Michail Shadkin who wrote (2509)	6/21/2001 6:01:31 AM
From: XBrit	Read Replies (1) of 6873

A person with seriously large cojones might consider going long AVNT sometime soon. Their exposure for restitution in the criminal proceedings is maybe $250m, or $6 per share. Their civil suit liability is unknown, but probably not that large because of certain key decisions weakening Cadence's case. AVNT's stock price has been depressed for years in anticipation of this liability. The recent sharp drop makes no sense fundamentally. Looking at the numbers for EDA companies: CDN, forward PE about 20, cash 45c/share MENT, forward PE about 16, cash $2/share SNPS, forward PE about 24, cash $6.50/share AVNT, forward PE about 5, cash $6.60/share AVNT is business-wise at least as good as any of the others, so clearly the stock price reflects a huge penalty for the legal proceedings. My guess, the penalty is too large, in other words we have a market inefficiency.

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