Re. KTEL
Full text at biz.yahoo.com. If there are such things as limits of insanity and the market's top, seems we are well beyond and above.
Enjoy the big picture...
Alex
============
Stock Investor Trading News Reiterates Strong Buy on KTEL with $100 Target
AUSTIN, Texas, May 1 /PRNewswire/ -- Stock Investor Trading News (http://www.sitn.com) has reiterated its ''Strong Buy'' recommendation on shares of K-tel International (Nasdaq: KTEL - news). Stock Investor Trading News initiated coverage of KTEL on April 17 at $21-1/8.
...
''First of all, the recent dramatic price gains merely lifted the stock up from an extremely undervalued level. At the close on April 9, before the new Internet commerce venture's launch date was announced, the stock traded at less than 12 times trailing twelve months (TTM) earnings and a little more than 23% of TTM sales. Moreover, the stock had previously traded infrequently as most of the shares are held by the company's chairman.
....
''We continue to believe that a price to sales multiple expansion to a little over four times TTM revenues would be quite reasonable for K-tel, would still place it among the bottom range of valuations for emerging-growth Internet retailers, and would yield a share price of approximately $100. We would not be surprised to see an even greater multiple expansion and even higher stock price than our initial target as the company's new venture proves itself in the months ahead.
...
Technical Analyst David Barney says that ''the time has come for K-tel to shine. Now that they have a product for the world to see the Street should begin to value the company in the same way they do the others in the group. I still feel that what will drive the stock is the enormous imbalance between the supply and demand. There is just no stock out there. Each day that goes by more and more long term players accumulate the stock, meaning that moves of 10 or even 20 points in a day are not out of the question. Investors that own the stock now seem to realize that by just holding the stock they can move it higher.
...
Mr. Barney and Mr. Riley, as well as other principals and affiliates of Stock Investor Trading News, currently hold a long position KTEL.
================== |
