W.I.N.S. BEAR TRAP ALERT FOLLOW-UPs!
It is now Oct. 12, 1998 and I want to illustrate just how accurate
the BB and RSI indicators are! I can look at a chart and pin point
the signs for upward or downward pivot points by the patterns. They
are really easy to spot folks! Practice!
"NEM is my favorate in the gold area to short right now! Dropped
-1 3/8s <-4.8%> today. More to come! NEM trades LEAPs and has plenty
of open interest in the options. Nice PUTs volume today!
NEM I really like as a bear trap. NEM investors are high on drugs to
be paying a premium of 48.8 P/E for only a 7.5% growth rate when the
whole industry is at a 17.4 P/E. Now hear this!!!!! NEM trades LEAPs
and there are TONS of options traded on this sucker. Check out the
2001 LEAPs for the 10 strike price @ 17. You can enter into a spread
by picking up the 10 JAN01s and CCing the DEC. 27.5s * 3 1/2. That
lowers your cost $10 strike + 17.5 premie = $27.5 - $3.5 = $24 cost.
That's a 20% no brainer! Now, if you follow W.I.N.S. you could buy
the LEAP now and wait to sell a in the money CC and really grab some
premies. Buy PUTs with the premies and milk NEM sideways! :-)
NYSE: (NEM : $26 3/8) $4,127 million Market Cap at October 1, 1998
Trades at a Premium PE Multiple of 48.8 X, vs. the 17.4 X average
multiple at which the Gold & Precious Metals SubIndustry is priced.
Consensus Future 5-yr Growth Rate: 7.5% "
When I made that prediction NEM was $26+ and today it is at $24+ and
still moving downward. Expect $18 to $20 before it bottoms out!
askresearch.com
"PAYX what can I say? TIMBER! Down another -15/16s <-2.1%> and may be
ready to rebound. Keep an eye on the BB and RSI!"
Well, PAYX did bounce after a 10 point drop from the top! It tagged
the lower BB and reversed on the dime. NOTE! Wait until you see PAYX
drop this next time as it attempt to make a new high! You might be
able to play PAYX from both sides. up and down!
askresearch.com
"NYSE: (AU : $29 1/8) $1,113 million Market Cap at October 1, 1998
Employs 50,000. Trades at a Premium PE Multiple of 85.7 X, vs. the
17.3 X average multiple at which the Gold & Precious Metals
SubIndustry is priced. Consensus Future 5-yr Growth Rate: 3.9%
askresearch.com.
RSI is very high and the upper BB has been tagged. AU does not trade
enough options contracts so consider shorting the stock itself. I
believe AU made a new 52-week high of 29 1/4 today! TIMBER real soon!"
Wow! Today, AU is at $24 down from $29 and really picking up downward
speed. Watch out $20! When was the last time you scored 9 points in
less than two weeks?
askresearch.com
"FON is Sprint which is NOT a gold stock. But, the only sprint I see
is an overpriced stock selling at a premium 41.9 P/E with a growth
rate of 18.72% when the whole industry is at 19.4 P/E. FON does pay a
div and Record Date: 09-SEP-98 Pay Date: 30-SEP-98. Hummm? Just
passed! FON RSI is limp but the price continues to climb. Up today
and ready to tag that upper BB and TIMBER! Just my opinion of course!
NYSE: (FON : $74 1/2) (FONp : $225) (FONpA : $240) $32,244 million
Market Cap at October 1, 1998 Ranks 76th in the Fortune 500 on
Revenue & 70th on Profit. Employs 48,000. Trades at a Premium PE
Multiple of 41.9 X, vs. the 19.4 X average multiple at which the
Telephone SubIndustry is priced. Consensus Future 5-yr Growth Rate: 18.72%
Finally, you can tell when the CEOs are cashing in and leaving the
crumbs for the investors! FON really is showing their true colors
by the insider trading! Now, who is going to be the last one out of
the exit door? biz.yahoo.com;
Today, FON is at $70 down more than 4 points and ready to reversed.
FON just tagged the lower BB and the RSI is building up.
That's it! Wishing you all the best of "good buys and W.I.N.S!" |
