This was sent to our members this past Sunday:
SUGGESTIONS WANTED!!!!!
We would like to encourage our members to submit any stock picks they believe are good solid picks. Some of our previous picks have come from your fellow members.
We would like to welcome the new subscribers to the PREZCLUB family. If you have any comments please e-mail PREZCLUB@yahoo.com.
We would encourage our members to freely discuss our picks on our "THE CABINET" SI thread, to either give feedback or suggestions.
Reminder: Please only consider the content of this newsletter as merely the opinion of our writers. We are not responsible for any transaction you make based upon the information we provided.
WEBSITE is UP: WWW.PREZCLUB.COM
The website is finally up and running, you will able to see the status of our picks from the past. We will however be continually updated the site as it is not in full completion mode yet. Please give us any suggestions or questions you may have.
This Weeks Picks:
CIEN- CIENA Corporation designs, manufactures and sells dense wavelength division multiplexing systems for fiberoptic communications networks. After the failed merger with Tellabs and the loss of a few major contracts the stock has taken a major hit. But since the Tellab merger finally ended officially, it has poised CIENA at this level for another takeover possibility. Many have been talking about Cisco and maybe even Ascend. In any case it seems a takeover maybe eminent. At these levels it seems you can't really lose. At least a quick jump or two could be a good jump off point. This will probably be a good playable stock for the next 2 weeks. A long term on this stock is not out of the question, in these markets a good profit maybe hard to resist. Current Price 11 9/16.
PSQL- Platinum Software, Inc. designs, develops, markets and supports an integrated line of financial application software. PSQL just got hammered on Friday. We think it is due to the ZD article about its CEO's compensation. However, we saw a 300000 trade, most likely a dump. The article may have been an excuse for someone to dump that many shares, but since the stock did not move much after that point, many buyers were probably on hand. That bolds well for the stock. Most likely many of the investors that were in PSQL just learned about the large drop after the trading day. Those that were in will probably stay in since there is not much to gain or to lose at this point for those investors. A jump could occur at open and tail off dramatically but should see some support by the end of the day. Since earnings report are not going to be out for another month, and first few weeks of September has already past, it doesn't seem earnings are the issues. PSQL will at least be a good play this week and maybe even until Oct. 29 when earnings are going to be released. Could return to about 12 short term before tailing. Current Price 8.
IRIC- Information Resources and its subsidiaries provides UPC scanner-based business solutions to the consumer package goods industry. IRIC is leading provider of proprietary data used to monitor product unit sales volumes and changes in product market share. It sells data, analytical models, and decision support software to the consumer packaged goods and pharmaceutical/drug store industries. We see the company as a solid investment. Earnings are growing at more than 35% a year. Current Price 12 3/4. Please watch your entrance point in has just rebounded from its low with a small jump on Friday.
ABF- Airborne Freight Corp. provides door-to-door express delivery of small packages and documents throughout the U.S. and foreign countries. ABF has solid fundamentals, the valuation is tremendous for this company. With a P/E 6.65 it is far below the company's historical valuation. We believe that ABF has been oversold. The company's repurchase of its stock will help boost lagging stock prices, two million shares by end of 1999. A solid 15% return can be gained by this stock in the short term. Current Price 18 13/16.
NPCI- NPC International Inc. is the world's largest franchisee of Pizza Hut chain. It operates 658 Pizza Hut restaurants mainly in the South and Midwest. It recently sold off 80% of its holdings in Romacorp (parent of Tony Roma's). NPCI is a solid company, fundamentally and in its management. We believe that NPCI will have strong growth this year as well as next. At current valuation it is certainly a good buy. Current Price 10 1/2.
Well, those are this weeks stocks picks. We will try to update our members if news does come up. If you would like to discuss PREZCLUB picks join us on the SI thread at "THE CABINET" Good Luck.
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