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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study!

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To: Herman J. Matos who wrote (610)3/10/1997 9:55:00 PM
From: tdk   of 14162
 
hey Herman. Very interesting about TD. I am in the business and TD is one of the bigget Box Pushers out there. Don't know how the market is going to react, though, to a low margin company just making, or just beating analysts expectations. I owned APCC when their earnings beat analyst by 2-3 cents and the stock tanked from 27 to 20 - AND THIS IS A GREAT COMPANY with revenue growth of 20-25%.

I now own INAC, Inacom. They are similar to Tech Data, however they are more of a consulting/services firm, as well as box pushers. They have great margins, earnings growth for all of 97 and trade now (recent 5-10 point pull back attributable to networking sector), at a ridiculous P/E (I think it is 10, or so).

Anyhow, with networking sector reacting weird right now, I would look to stay away from tech companies with earnings announcements coming up, or rather I would jump into a GREAT company that already had correction like INAC (they also have good options).

My 2cents...tdk...
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