Here's the latest from Scoggins.
Wednesday, January 27, 1999
This week's stocks to watch:
This week we don't have a small cap company to profile, however we are taking a look at what is ahead for us in many of the stocks we have taken phone calls on:
EBAY – We don't own this one, however we are bumping it up onto our day trading list. In the past when one of the net stocks has announced a split, there has always been a lot of ups and downs.
AMZN (Amazon) - Still own this one, although I sold half my position and bought AOL, and MKTW (market watch). Stock traded briefly in the $190's and can easily do so again, however, AMZN has always been highly volatile, and even we have been on the losing side here.
AOL – America Online is the staple of the Internet industry. They are profitable, and more importantly, there are the biggest of the bunch. In the past we have seen splits at these levels, however, with AOL having had a split in the not so distant past, they may wait a while.
ATHM (At Home) – At Home has proven to be a fairly stable trading stock. I have not attempted to short this stock, so I have no clue as to how a down side strategy would play out.
MKTW (Market Watch)– This stock has given me no end of trouble. I own the stock at $96 3/8 and I own a lot of it. After a brief run, the stock has nosed in and seems to have found a bottom between $65 – $70. There is some upside here, but the pull back was hard and fast. It may take awhile to start moving back up and we still might see some down side risk if the volume continues to dry up.
CAGI (Carnegie International, Inc.)– This stock made a nice run from the $2 range and after peaking out near $9 has settled back and begun to build a base between $5 - $6. We have taken several calls from people asking what levels to take profits or where they should buy more. What we have found here, having traded this stock since the $0.45 range, is that CAGI has never really done what people have expected. After taking profits around 5 ¾, the stock surged up and came back allowing us to re-purchase the stock between $5.12 and $4.50. We still feel there is a significant upside on this stock, and expect double digits within the next few months. What we are hoping for here is that as the price moves up, the company will take advantage of the price and make acquisitions to substantiate it.
SEEK (Infoseek) – I have profiled this stock in the past, and it continues to be one of my favorite net stocks. Long term, this one has more potential than many of the others. We saw a steep rise in the stock from the high 30's a few pull backs in the mid 50's and then a sharp run into the 90's. The stock seems to be building a base in the high 60's - low 70's. At this point we see a move back towards the 100 level, although weather it will break through or trend back remains the million dollar question. My guess is if SEEK pushes through 100 prior to the yearly April sell of (the tax sell off) it will get hit bad. However if SEEK makes a run in mid May we may have a run away on our hands as it joins its peers. Keep in mind this stock has never been a high flier, and SEEK's management may opt for a split rather that let it get too pricey. Time will tell.
IPLY (Interplay) – Video game maker that has some real potential. Do some homework on this stock. It could be a winner down the road, and the down side seems limited. Next time you are in BEST BUY or CIRCUIT CITY take a look at who is getting shelf space. Their recent title BALDUR'S GATE has been flying off the shelf. I don't own this one yet, but I do have it on my radar and have put a call into the CEO for an interview. For the time being, give it a look-see.
EGGS (Egghead) – A pull back in this stock in the last couple of days is making this one look very attractive. Could be some nice upside here from the mid 18's to 25. Percentage wise, a $3 move from these levels would be a nice return. Keep an eye on it.
That's all for this week. We have added a new section called UPDATES to our website and the plan is to try to react to market changes via this new addition. So, please visit us at www.stocktalknews.com and let's hear from you. |
