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Technology Stocks : PSFT - 1997 Outlook [closed thread]
PSFT 0.00010000.0%Oct 29 5:00 PM EST

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To: McNabb Brothers who wrote (559)12/2/1997 12:30:00 PM
From: Chuzzlewit  Read Replies (2) of 940
 
Oh no!!! Not you guys again. For your information, the FA on this comapny is fantastic. I caution you to watch the liability line item called "deferred revenue" very closely. This little gem represents contracts that will be filled in the future, and it has been growing very nicely. For the last nine months it rose from $183MM to $284MM. That's why Value Line gives this company very high marks for earnings predictability.

Shorting or selling naked calls on PSFT is really playing with fire. We saw one short squeeze last April, and looking at the short interest now, it could easily happen again.

I wish you the worst of luck on this one.

Paul
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