Info--see near end for TEXN, this is what I started getting after talking to the company.
Subject: Mid-Morning Comments
Date: Thu, 21 May 1998 09:27:46 -0700
From: "mike king" <kingm@ccweb.net>
To: <Undisclosed.Recipients@esus.ccweb.net>
21 May 1998, 0900 hrs.,Las Vegas Time
Mid-Morning Economic Comments
Memorial Weekend Play Now in Focus
Traders will be leaving today for a four-day holiday. Typically in a bull year the market trends over
this period. Stocks such as GM and IBM should lead the way. Traders might want to participate
through the use of OEX 100 Calls, Buying the June 540 and 545 Calls. Conservative traders might
sell (3) 550 Calls against to lock in a profit. The idea is to profit from the possibility of a trending
Friday-Monday combo, yet not expecting too much of a rally.
The Dow is off 20.17 to 9,151.31. Transports are down 10.57 to 3,388.18. Nasdaq is off 2.96
to 1,828.79. The Phila Semiconductor SOXX is off 2.56 at 281.02.
Our idea to sell Dell yesterday wasn’t bad. It fell almost 3 points and is off another 3
today. Target remains 86. However, don’t be greedy. 6-8 points is sufficient for two days.
Other computer stocks were influenced negatively: IBM lost 1 « to 123 «. Gateway fell over 3
points for its worst close in a month. The negative balance of trade deficit of more than $ 13
billions in the red for March, is affecting hardware stocks. But that’s in the market….
Drug stocks have been very strong. Warner Lambert rose 4 15/16 to 202 9/16, while Merck
gained 1 11/16 to 120 9/16. Bristol Myers rose 1 _ to 112 15/16. We like Mylan Labs trading
31 5/8 which also rose 1 1/8 yesterday. If you take the stock price of these companies and divide
by the dividend of the sales divided by the stock price, you find that Mylan ( MYL ) is very well
priced in that division. Pfizer ( PFE ) doesn’t trade to well, but would buy at 106.
Another stock reasonably priced is Air products & Chemicals ( APD ) at 89 within 2 points of the
all-time high. The May Co.,( MAY ) is poised to make a new all-time high.
Applied Voice recognition ( AVRI ) had a nice move yeaterday. After making a low at 1 1/8, the
OTC BB stock rose almost a point to 1 7/8.
We continue to recommend TEIM at a nickel. It appears they are sufficiently capitalized to make a
successful launch of the Vertex hair project. They have spent the better part of four years
researching, testing and getting approvals.
Another stock we like is 21st Century Technologies,Inc., priced in the 0.16-0.17 area, it looks
cheap to us. It won’t be long before their earnings exceed this price number.
For those interested in Y2K, the Year 2000 problems, we like Optical Systems ( OPSY ), which
has doubled its sales the past year to year and month to month. |
