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Politics : Ask Michael Burke

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To: Cynic 2005 who wrote (22725)	9/13/1997 7:44:00 PM
From: GuinnessGuy	of 132070

Mohan, Why in the world would you buy puts on JBIL when there is so much 'other' dead meat just waiting to be picked off? So far anyway JBIL is still showing quarter over quarter gross margin growth as well as top line growth. What, in your opinion, is going to breakdown here: top-line growth or margins? Given their rate of bottom line growth the PE is low. Of course, it will not be the case that they can grow this way forever but still I think that, unless you like to live dangerously, you can find better ways to lose your money.-g- If you are insistent on shorting within this sector you might want to look at SMOD. While SMOD's PEG is relatively less than JBIL's at least you have some definite gross margin deterioration that neccesitates them to grow the top line in a big way. Of course, I'm not advocating shorting either of these two right now(in fact I've been long SMOD and loving it). I figure that when the tech wreck begins it won't start in this part of the food chain; so again I'd look elsewhere. My $0.02. Craig

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