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Strategies & Market Trends : InvestRight - Short Term Trading St

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To: RSkarsten who wrote (828)1/28/1999 10:58:00 PM
From: Jeffrey L. Henken   of 939
 
Well Russ one of the things to look for is insider buying. It's not something you will find much of in the internet sector. Yahoo insiders have been selling for a long, long, time.

But insider buying or an announced share repurchase is something that really makes me feel good about a company's potential. Companies who do this will often announce that they have a plan in mind to turn things around. I generally look at a chart as well and if a company is trading for an extended period of time without any move then I say the longer the better.

I also like to see a fully reporting company with a minimum of financial problems in the 10K disclosure statements. Does the company need more money? How are they going to get it? Look at the board of directors and make sure it is well diversified. Who is handling the company's PR/IR? Who are their competitors and what are their chances for actual profits and at what kind of margins?

Of course you can throw all that out the window with the hot internet sector. What we are looking for is undiscovered stocks that are attempting to get their story out there and have just not succeeded. KANA was right there one month ago. RDIM was too 6 weeks ago.

There are more out there but we have to dig deeper. Try looking through the PR Newswire list tonight and tomorrow morning and see what you come up with that is more undiscovered:

biz.yahoo.com

Then make some phone calls to the company and it's Investor Relations outfit to see if they have a real plan or are they going after this with smoke and mirrors. Be careful here too because in the last year alone I have heard some huge whoppers.

Regards, Jeff
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