<ONHN,DGN,Internet Options,Y2K and Company Sleuth>
Ken, I'm not sold on ONHN. The Company's game plan is too new to evaluate management's ability to execute. They have no cash and will need funds to provide content to derive income. The recent private placement provided them with a short term lifeline.
There's plenty of news coming from ONHM about relationships with top notch, brand name, well respected companies, but no monetary terms are available. For example, how much is Smith Kline paying for the advertisement space? What's the advertisement income's relationship to the expenses? More questions pop up as well.
The analyst covering ONHM:
<On May 18, 1998 Hanifen, Imhoff analyst Kamal Hamid issued a 20 page Company Report on Onhealth Ntwrk. Report highlights: 'A BUY rating was reiterated with a 12-month price target of $16 per share, reflecting the company's position to lead the healthcare category on the Internet. The 1998 and 1999 EPS estimates remained unchanged at losses of ($0.55) and ($0.07), respectively.' >
The TA on ONHN is telling another story than my FA read however and we are in the midst of an internet rally, so the heck with FA <g> Maybe Mr. Hamid is right. The 15 crossover as you pointed out is a nice signal. Other signals are there to confirm the breakout as well, as you also pointed out.
I've been playing DGN for the last couple of weeks and it looking better and better. The DGN chart shows the 15 day moving avg.
crossover as a powerful indicator. Look at the end of Oct.
clearstation.com
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Another way to play the Internuts, from this weekend's Barrons:
<The Philadelphia Stock Exchange last week began listing options on the TheStreet.com Internet Sector index, symbol DOT. This column a few months ago noted the surprising thinness of trading volume on the then-three Internet sector options. Activity has since picked up a bit, though not nearly commensurate with the current frenzy for the stocks. The logic of using these options -- which offer limited downside and the ability to bet against this treacherous and tough-to-short group -- is compelling.
The TheStreet.com product, created by the financial news Website, has as much going for it as the best of the existing 'Net indexes. Its 20 components are pure Internet players, not giants like Cisco Systems, and it's equal-dollar-weighted, to avoid skewing by a few huge companies.>
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This evening's 60 minutes will have a segment on the Y2K issue.
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Check out www.companysleuth.com Free registration and informative site.
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Amigo Sergio
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