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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: SMALL FRY who wrote (43540)	6/8/1999 11:43:00 AM
From: Scrumpy	Read Replies (4) \| Respond to of 120523

Is there a way of determining if shorts are covering on a particular security? I'd like to know if that's what's happening with NITE. Seems to be moving more freely...

To: SMALL FRY who wrote (43540)	6/8/1999 1:54:00 PM
From: debra vogt	Read Replies (1) \| Respond to of 120523

PRFM- Am I missing something here? I found this in Dan Dorfman's column at Jagnotes today. Looks like if the IPO is priced at 7-9 then PRFM stock should rise in anticipation: How Sweet It Could Be… As comedian Jackie Gleason used to say, How sweet it is. A sharp trader I know, never, ever quoted in print, is saying the same thing to me about Perfumania (PRFM) 3 11/16, a retailer and wholesaler of designer and brand-name fragrances. Though the company is losing money, the trader says he doesn't care and has taken what he describes as a sizable position in the stock. How come? It's a numbers game, he says, based on the company's announcement yesterday that it has filed an initial public offering of 2.5 million shares of its online business— Perfumania.com, an Internet-based subsidiary engaged in the same business as its parent. The offered shares will represent 33% of the online business's roughly 7.5 million shares outstanding, and is priced at an initial range of between 7 and 9. The parent has about 7.4 million shares outstanding, equivalent at its current price to a market valuation of around $30 million. Figure a mid-range price of, say, 8 for the online business and that gives it a market capitalization of $60 million, or a 100% discount to the parent's valuation. As the trader sees it, if the subsidiary is worth $8 a share and you allow only a valuation of $2 for the parent company, or half its market value, you wind up with a value of $10 for Perfumania. And he thinks its stock will trade at or very close to that price once the spin-off is completed. "You don't have to be a genius to figure it," he says. "You just look at the numbers and there's a substantial stock gain in the offing." Dan Dorfman does not trade the market. His stock market investments are limited to broad-based mutual funds. © 1999 JagNotes.com, Inc. All rights reserved.