Pancho...
have a great vacation. Snowing like H*** here in the Boston area today about 3-4 inches so far.
>> tried to get ZONA and CDRD [for shorting] but could not find any shares. <<
Shorted ZONA (and AVNT) on Monday. Noticed your comment on CDRD and found some interesting coments that you may wish to follow up on.
>>Monday, December 22, 1997
Siren Song
New venture rides high on the promise of commercial-free radio
<Picture: thin rule>
By Andrew Bary
Did you ever wish you had put money into the cable-TV industry 20 years ago? Well, apparently a lot of investors do, and now they're trying to get in on a similar development in the nation's radio system, one that could allow listeners to get 50 channels of commerical-free music, news and entertainment for an upfront fee of about $200 and a monthly charge of $10 or so. The company behind this ambitious plan is CD Radio, a Washington-based outfit whose shares trade on Nasdaq.<<
Another comment from same article.
>>08:38 ET CD Radio Inc. (CDRD) 16 11/16: In a Barron's piece BA Robertson Stephens CIO Paul Stephens said he expects shares of this satellite-radio company to reach $300 a share by 2004.<<
interactive.wsj.com
Another comment on CDRD from Merrill Lynch
>>CD RADIO (CDRD) 17 1/8 +7/16. It was not too long ago that the bullish write-up in Barron's on an obscure concept stock would have catapulted the bid several points higher in pre-market and sent the shares rallying 20%-25% at the open. This type of zealousness, however, has gone the way of the disk-drive stock. Not even the forecast of a $300 per share price was enough to put these shares into orbit. Now that we're done crying about the reduced role of buy-the-hype speculators in today's jittery market, let's get down to business. Shares of this satellite-radio company received a relatively bullish write-up in the latest Barron's. CD Radio plans to offer 50-channels of commercial-free music and news beamed into the car or home via satellite for an initial fee of $200 and $10 a month subscription fee. Although the company currently has only nine employees a no revenues, Merrill Lynch (an underwriter of CDRD stock and bond offerings) projects earnings of $7 a share in 2003 and $20 a share by 2007. Strong points cited in the article: new concept, strong cash position; high-profile investors; model a proven success in cable television industry. Shortcomings: will likely face competition from American Mobile satellite within a yr of launching; independent testing suggests that quality could be poor in densely populated areas and in cars moving at more than 30 MPH; company has yet to launch a satellite; history tells us that these types of companies never quite meet expectations and must constantly come back to the market to raise capital.<<
briefing.com
When they start talking about stock prices raising to $300, and earnings forecasts out to the years of 2007, IMO they are crazy!!! Who the heck knows anythig about the year 2007 from an investment standpoint.
CDRD must be a good candidate to short but with this hype it is sure to up for awhile.
Bob T.
have a Merry Christmas and Wonderful New Year.
Bob T. |
