Scroll down to Sev and Hec.
TECHNOLOGY INVESTMENT PUBLISHER
December 21, 1998
International Digital IDTX-Nasdaq
IDTX has it all as far as we are concerned; a share price that has been cut
in 3, now trading at .65c. Institutions buried to the tune of 3 million
shares at above $2. Prominent group of insiders worth millions, and
determined not to fail. The president built "Mailboxes Etc" into a
multi-million dollar business before he sold out for serious money, and
intends to apply the same franchising principles here. Our guess is that
whoever furnished the shell before the business was rolled in has been
unloading stock. We are buying in this price range, .68c and have paid as
much as .85c in the past 2 weeks. $1.30-$1.70 will be our exit point.
Contrarian Plays
The contrarian in us has been loading up on Seven Seas Petroleum (SEV-AMEX)
and Harken Energy Corp (HEC-AMEX), both oil plays both in Colombia, both
drilling right now as we speak into the same formation from different
points. Both are looking at a minimum of 20,000 barrels from these new
potential wells. SEV is the cleaner albeit pricier play with 24M out;
Insiders own approx. 30%. Proven probable as of now in the 1.5 billion
barrel range. Opeenheimer / Michael Metz had a target of $60 when the stock
was trading in the twenties earlier this year. We love it here between
$5-$6.
HEC is a bit of a hog with more than 100m out, but trading at less than $2
from a year high of 6.50+ We are buying here under $2.00 with a potential
for $3.00 short term. The chart looks for major breakout on SEV if it
cracks 6.80, HEC will need lots of volume.
Investor Bytes
Waiting for their turn in the limelight are: AGC-ASE, flipping out another
14,000 shares today as tax-loss season continues; INS-V holding very well
under junior market conditions - we expect this to become hot and heavy out
of the gates in 1999; KMV-V is our sleeping giant - we are quietly
accumulating; RRL-V is an interesting oil shale play with explosive upside
potential as the story widens - underpromoted for now.
Have a great day!
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