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Non-Tech : eLottery.com (ELOT) / (NASDAQ NM:XTON) -- Ignore unavailable to you. Want to Upgrade?

To: Herc who wrote (465)	6/10/1999 4:38:00 PM
From: julius kluger	Respond to of 1266

POSITIVE THINGS ABOUT ELOT... Peter Lynch Look at the Total Debt/Equity Ratio (PASS) : This methodology would consider the Debt/Equity ratio for ELOT (60.0%) to be mediocre. If the Debt/Equity ratio is this high, the other ratios and financial statistics for ELOT should be good enough to compensate. William O'Neil Look at the 4 month S&P relative strength line (PASS) : This methodology likes to see confirmation from this indicator when buying as a sign of a company's recently strong momentum. It shows a company's weekly performance in comparison to the overall market, as measured by the S&P 500. Look for a general upward trend in weekly relative strength, as the best stocks usually act better than the overall market. ELOT's relative strength trend has been increasing over the last 4 months. This type of price action is favorable. Look at the price performance compared to all other stocks (PASS) : A company's weighted relative strength, which is the stock's price performance compared with the overall market over the past year, should be no less than 80, although above 90 is preferred. As long as all the other numbers are in check, these companies should continue to perform well over the next 3 months. ELOT's relative strength of 94 is at an exceptional level, and therefore would pass this test. Look for confirmation of at least one other leading stock in the industry (PASS) : Make sure that a company's industry is attractive by confirming that at least one other company in the industry has a relative strength above 80. There is confirmation in ELOT's industry (Communications Equipment), as there are 81 companies that have a relative strength at or above 80. Look for leading industries (PASS) : Buy stocks in top performing industries. Look at the number of companies within an industry that have a weighted relative strength above 80, and choose only the top 30% of those industries from which to select stocks. In another method, look for industries with the most stocks making new 52-week highs. ELOT's industry (Communications Equipment) is currently one of the top performing industries, as it passes both of the aforementioned criteria. Look to see if Long-term Debt/Equity has been decreasing (PASS) : Companies who have consistently cut debt over the last 3 years, or who have no debt, are looked at favorably. ELOT, whose Debt/Equity for the last 3 years (from earliest to the most recent fiscal year) was 64.9%, 64.9%, 38.8%, would pass this test. The Motley Fool Look at Relative Strength (PASS) : The investor must look at the relative strength of the company in question. Companies whose relative strength is 90 or above (that is, the company outperforms 90% or more of the market for the past year), are considered attractive. Companies whose price has been rising much quicker than the market tend to keep rising. ELOT, with a relative strength of 94, satisfies this test. Look at Insider Holdings (PASS) : ELOT's insiders should own at least 10% (they own 40.0%) of the company's outstanding shares which is extremely attractive since the minimum requirement is 10%. A high percentage indicates that the insiders are confident that the company will do well. Look at Inventory To Sales (PASS) : This methodology strongly believes that companies, especially small ones, should have tight control over inventory. It's a warning sign if a company's inventory relative to sales increases significantly when compared to the previous year. Up to a 30% increase is allowed, but no more. Inventory to Sales for ELOT was 13.0% last year, while for this year it is 18.6%. Although the inventory to sales is rising, it is below the max 30% that is allowed. The investor can still consider the stock if all other criteria appear very attractive. Look at Average Shares Outstanding (PASS) : ELOT has not been significantly increasing the number of shares outstanding within recent years which is a good sign. ELOT currently has 63.0 million shares outstanding. This means the company is not taking any measures, with regards to the number of shares, that will dilute or devalue the stock. Look at Sales (PASS) : Companies with sales less than $500 million should be chosen. It is among these small-cap stocks that investors can find "an uncut gem", ones that institutions won't be able to buy yet. ELOT's sales of $131.3 million, based on trailing 12 months sales are fine, making this company one such "prospective gem". ELOT would pass the sales test. Look at the Daily Dollar Volume (PASS) : ELOT passes the Daily Dollar Volume (DDV of $10.9 million) test. It is required that this number be less than $25 million because these are the stocks that remain relatively undiscovered by institutions. "You'll be scoring touchdowns against the big guys on your turf." David Dreman Look at the Payout Ratio (PASS) : A good indicator that a company has the ability to raise its dividend is a low payout ratio. The payout ratio for ELOT is 0.0%. Unfortunately, its historical payout ratio is not available. Nonetheless it would pass Dreman's payout criteria, as this is a very low payout. ------ Previous