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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: violatrader who wrote (46551)	6/25/1999 9:41:00 PM
From: Jenna	Read Replies (2) \| Respond to of 120523

"Please read this on CUST". CUST and VRSN, Viola, I'm not sure that CUST's rise today was not on the expense of VRSN. I love VRSN, CUST is just a nice momentum play that will have its work cut out to get ahead of VRSN. IMHO I feel that VRSN is a gorgeous stock and great company, A real company, much like BRCM, VRIO, NSOL, LCOS, BVSN, VRSN, EXDS, ABOV, GNET, NITE, BYND, YHOO, AOL and RNWK are real companies. Real companies will get stronger, the IPO's and companies like CUST will probably get weaker as more and more IPO's come out to challenge the likes of VRIO and VRSN Read this excerpt reprinted in part from "The Motley Fool's" someone clever enough who actually understands the market, not like the shorters "profess" they do, but don't. They present the truth, of course, but the end of the article is profound and one that I think shows that they do understand the power of a stock like CUST and power of the word "POTENTIAL" and lots of capital"..... They understand CUST.. and the market.. ....... One certainty is that electronic commerce will continue to grow exponentially into the next century, and there is a market for the types of products under development at CustomTracks. But at the current time the company has no products, no customers, no sales and, of course, no earnings. Declaring that company anything but a development-stage company with potential is entirely premature. CustomTracks may very well develop a killer application, execute flawlessly, and then reap profits from its efforts. With minuscule liabilities and a full $83.7 million sitting on the asset side of the balance sheet, the company has more than enough ammunition to develop and market its products. The large number of shares insiders at the company have purchased is also a very bullish sign. [ed. comment I like the way they present unbiased both sides, not try to sway you over to one side] Nevertheless, investors in CustomTracks face a tremendous amount of invention risk since there is no guarantee the promised products will perform well and achieve any meaningful market penetration. With so many unknowns in the future, investors in CustomTracks better have valuation targets sky-high to compensate them for the tremendous amount of risk involved today. Furthermore, there is also competition to be concerned about. CustomTracks is not the first to the market with e-commerce security systems, and the company is going up against an established Goliath in Verisign (Nasdaq:VRSN - news) . Beyond having relationships and customers already in place, Verisign has twenty times as many employees and a market capitalization near $3 billion to draw upon. There are also several other upstarts in the industry, such as Entrust (Nasdaq:ENTU - news) , that investors in CustomTracks need to size up. CustomTracks may be on the right track, but there are other horses currently ahead in the race for a ubiquitous and secure online payment system. Following is the part that I think is important for TRADERS (note, I say that purposely, Motley Fool may be talking about the investing aspect, but we should be concerned about CUST and its potential as a short term trade (a very successful short term trade.. up 45% in a matter of days)... There is opportunity for money to be made in CustomTracks, but it could very well be on the short side of the equation. However, one would have to have quite a stomach for risk to want to short a stock with such a volatile history and large potential, even if the potential never does become reality. Whether CustomTracks is just another over-hyped Internet stock or a company with a keen sense of direction and a revolutionary product remains to be answered. As always, time will tell us what the situation really is. DO NOT even be concerned with posters who tell you otherwise. I tried to buy puts, but saw immediately the writing on the wall. When a trader is wrong, he is wrong and he should get out. By getting out I saved the loss on the puts and added some more gains to the already large weeklong gains in CUST.. I still think VRSN is the King... but today CUST was queen for a day (and it reigned regally all week)...