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Non-Tech : TD Waterhouse Group (TWE) -- Ignore unavailable to you. Want to Upgrade?

To: edwin mok who wrote (227)	6/22/1999 8:34:00 AM
From: CIMA	Read Replies (1) \| Respond to of 1413

The Internet & Casino Stock Report June 22, 1999 Market Overview: Expectations of less than stellar earnings by the cyclicals funneled money away from value stocks and into the big momentum plays. The large Internet stocks continue to lead the Nasdaq higher; Go2Net (GNET) +21%, Priceline (PCLN) +13%, Ameritrade (AMTD) +23%, Yahoo (YHOO) +10% For the remainder of the week the buying should continue but a one or two day retracement is now in order as net stocks are beginning to approach the short-term overbought condition. Pullbacks should be viewed as buying opportunites. Casino Issues: After reaching an intraday high of 2 25/32 GIC Global (GGNC) collapsed, trading as low as 1 1/4 before rebounding to close at 1 29/32. We exited our long position at break-even 2 5/32. Competitor Starnet Communications (SNMM) saw strong buying gaining 17% to close at 14 15/16 on volume of 980,000 shares. Total Entertainment (TTLN) was unchanged at 0.687 Stocks to Watch: Semiconductors: Taking the advice of a survivalist trader we removed ourselves from the path of a moving freight train. Our short sale in Triquint Semiconductor (TQNT) was covered at a 5 point loss (-9%). The strength of this market is enough to make a short seller quiver. Two major IPO's are scheduled for this week. The first is online trading firm Waterhouse Securities (TWE). The stock is expected to price between $20-$24, with 32 million shares offered. In anticipation of the IPO, as well as brokerage earnings, discount brokers Ameritrade (AMTD), E*Trade (EGRP), Southwest Securities (SWS), Siebert (SIEB), and JB Oxford (JBOH) made substantial gains on Monday's close. These stocks should be observed for follow-through on Tuesday. The second IPO worth mentioning is online travel agency Tradescape.com (RSVN). As mentioned in previous reports we are looking at 1-800-Travel (IFLY) as a possible sympathy play. Now trading at $4 3/8, IFLY is poised for a short-covering rally and rebound from its recent lows. DSL Providers and Switching Equipment: Flasnet (FLAS), High Speed Access Corp (HSAC), Covad Communications (COVD), Copper Mountain Network (CMTN), Redback Networks (RBAK), Brocad Communication Systems (BRCD). Group now gaining momentum. traderjohn.com The information provided above is believed to be accurate. Earnings and revenues may be estimated for the purposes of evaluation and comparison. This letter is a general circulation publication. We do not give investment advice, nor do we at any time manage or direct the funds of any person or company other than our own. Positions contained in this report are the publisher's personal trades, and are not intended as trading advice for readers. This report is issued solely for informational purposes and content is not to be construed as being an offer to sell or a solicitation to buy any security. We do strongly recommend that readers contact their personal investment advisor or broker for advice pertaining to any investment questions they might have. The publisher is not a registered investment advisor, but rather a news editor and a stock trader for his own account.

To: edwin mok who wrote (227)	6/22/1999 4:52:00 PM
From: Philip Tung	Read Replies (1) \| Respond to of 1413

I wouldn't be surprised to see 10 billion as their market cap either, I am only trying to point out that this stock is not going to go ballistic in the first day of trading or even in the short term because the offering price is already at such a high cap. Stock will probably open much higher than offering price but not much more appreciation after that for a while. While you note that online trading accounts for only 25% of their business, I remind you that the market is only willing to accept such high valuations because of the online portion of their business. In 1998, based on just 333 million shares, they only made 15 cents, if you look around, most traditional brokers without online capabilities trade at best a high PE of 20, that means this stock wouldn't even make it in double digits if it wasn't for their online trading business