Hi Virgil and Everybody!
CATP - QUICK HONEY FOR THE BEARS
Well Virgil, you found another sweet heart of a technology stock to
short. CATP is going down TIMBER! I was so excited about CATP that I
decided to go along with the hammering down of CATP by shorting 300
shares today! I will add to the short position as it tumbles! I
suspect that the first bottom support level will come around $20 from
the current $26.50 level. That wiping out about 2 1/2 years worth of
gains before the dust settles on this one! The markets were charging
ahead very strong and CATP was falling like a rock! BAD NEWS as the
panic and fear continues to build!
TECHNICAL INDICATORS
CATP has broken below its' 200-day moving average into no man's land.
NOT a good technical sign folks! But, it is an easy bear trap to
milk! "Perception becomes reality in the stock market." Right now
CATP is bleeding and the shorts will hammer this technical stock to
death. Check out the chart below and set the time span to 3 years to
see the lower price support level.
bigcharts.com
CATP - Growth Rate Questioned!
CATP Growth Rate WAS 44.56% and had a P/E of 27.8. Not a bad
combination. But, the CATP P/E was on the rich side and CATP
management just announced a warning of a future slowdown in growth.
The big money is heading for the exits in profit taking. Plus,
downgrading is being announced by several brokerage houses and
newswires.
As of the close today CATP: NASDAQ: (CATP : $26 7/16) $1,428 million
Market Cap at September 8, 1998 Trades at a 8% Premium PE Multiple of
27.8 X, vs. the 25.7 X average multiple at which the Data Processing
SubIndustry is priced. Some fat ($7.00) is still left on the bone! I
will take it!
CATP DOWNGRADED
"By Krishnan Padmanabhan, CBS MarketWatch Last Update: 4:53 PM ET Sep
8, 1998"
"Shares of Cambridge Technology Partners Inc. closed down 3.4 percent
after the company was downgraded at Robinson-Humphrey Co. Analyst
David Keil lowered the rating on the information technology company
(CATP) to short-term "market perform" from short-term "buy." Citing
lower than expected revenue growth, Keil also reduced his 1999
earnings projection to $1.35 a share from $1.42 and his 2000 earnings
projection to $1.94 from $2.03. Shares dropped 15/16 to 26 7/16. "
FAT CATS CEOs STARTING TO CASH OUT
It is interesting to note Safeguard Scientifics' remaining 8,597,389
shares. There is no doubt that this investment company will have to
"short against the box" in order to survive! Shorting will further
depress the stock and send it into the abyss! At least shorting will
lock in their profits and they can wait it out and start buying
shares when it bottoms to average down their massive position
INSIDER SELLING:
PICCONE JOHN O Disposed 15,000 $50.79 06/16/98 07/09/98 S
PICCONE JOHN O Disposed 9,997 $50.79 06/16/98 07/09/98 S
PICCONE JOHN O Disposed 7,263 $50.79 06/16/98 07/09/98 S
PICCONE JOHN O Disposed 1,488 $50.79 06/16/98 07/09/98 S
SAFEGUARD HOLDINGS
SCIENTIFICS C B Disposed 50,000 $51.23 06/15/98 07/08/98 S 8,597,389
MESSMAN JACK L D Disposed 10,000 $53.00 05/04/98 06/10/98 S
MESSMAN JACK L D Disposed 7,000 $53.00 05/01/98 06/10/98 S
SHORT INTEREST
CATP has a very fast float turnover rate (TRO) = 16.55 Days. That
means that CATP trades 100% of the outstanding float of shares every
16 plus days. That's fast and it means plenty of rock n roll. This
bear has some sharp teeth and claws that can turn on you and charge.
Ahhhhh, but what a sweet tasting meat. You must be willing to set the
bear trap and move fast for this sucker. Gapping is the name of the
game with CATP. This stock may be a good sling shot. Ride it down
sell and then ride up the bounce! Double hit!
Short interest is just picking up. No data until two weeks from now!
Cambridge Technology Part
08/98 1,033,278 1,497,534 0.69
07/98 634,705 611,123 1.04
06/98 756,617 821,650 0.92
05/98 533,178 519,289 1.03
04/98 624,072 394,326 1.58
03/98 664,317 431,144 1.54
02/98 660,846 1,011,224 0.65
01/98 561,350 409,340 1.37
12/97 791,119 400,768 1.97
Sep 08 26 7/16 - 15/16 -3.42% 29 1/4 25 7/8 4,447,000
Sep 04 27 3/8 -7 25/32 -22.13% 36 25 3/4 18,451,000
Sep 03 35 5/32 -1 29/32 -5.14% 37 5/8 33 7/8 1,185,500
Sep 02 37 1/16 + 11/16 +1.89% 38 1/4 36 7/16 1,323,400
Sep 01 36 3/8 +3 7/8 +11.92% 37 1/2 31 1/4 2,025,000 |
