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Technology Stocks : John, Mike & Tom's Wild World of Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Logain Ablar who wrote (1386)	6/27/2000 11:52:00 PM
From: John Pitera	Respond to of 2850

John, good points all around. there are not many people saying we are in a bear market but it does kind of seem to trade that way from my perspective. the USDollar looks vulnerable to me. CRB and inflation rising, and with the Japanese and ECB happy to raise rates. that means tough times for equities. Japan and euro would be happy to see our stock market go down as they are tired of having us telling them how to solve their problems.

To: Logain Ablar who wrote (1386)	6/28/2000 6:11:00 AM
From: John Pitera	Read Replies (3) \| Respond to of 2850

here is an interesting search: companies that are trading below book value but have revenue growth and and not too much debt. here are the parameters: Criteria Mode Weighting Price/Book Ratio Low as Possible 80% Price/Book Ratio Between 0.1 1.0 Sales Increase Last 4 Qtr Between 4.0 4.0 Sales Growth 1 Yr High as Possible 100% Debt/Equity Ratio Between 0.0 1.0 Volume 30 Day Average Between 150.0 99998.0 a description of each of the above ranges: Growth Stocks Trading Below Book Value is a search strategy that is designed to alleviate some, but not all, of the problems of using the price/book (P/B) multiple as a criterion by which to screen stocks. The strategy accomplishes this task by restricting the search to only those companies that have recent revenue growth and that are not overly leveraged. Revenue growth is important because it suggests that there is momentum in the company's business while low amounts of debt risk are important because they reduce the possibility that a company may encounter bankruptcy problems over the near term. As an added criterion, the strategy requires that each stock have a minimum level of average daily volume to eliminate the possibility of the low valuation being a result of a lack of liquidity. Price/Book Ratio (P/B) is the ratio of share price relative to book value per share. Book value is simply the difference between a company's assets and its liabilities - a company's net worth. P/B is used as a valuation ratio to determine the relation of a company's market capitalization (shares outstanding times price per share) to its net worth. The mode for this criterion has been set at Between 0.1 - 1.0, Low as Possible to restrict the search to only those companies whose market capitalizations are lower than or equal to their net worth. Sales Increase Last 4 Qtr measures the consistency of short-term improvement in a company's revenues by comparing the last four quarters with the same quarters a year earlier. The mode for this criterion has been set at Between 4.0-4.0 to limit the search to only those stocks that have shown revenue growth during each of the past four quarters. Sales Growth 1 Yr calculates the annualized percentage growth of a company's revenues over the past four quarters. It is a measurement of a company's growth curve - with higher percentages suggesting stronger growth trends. This criterion, when used in the High as Possible mode, complements Sales Increase Last 4 Qtr by ranking stocks with higher growth rates above stocks with lower sales growth rates, but similar P/B ratios. The Debt-to-Equity Ratio measures the proportionate level of long-term debt to equity. The strategy utilizes this criterion in the Between 0.0 - 1.0 mode to restrict the results to only those companies that are not highly leveraged. Lower levels of debt reduce the chance of a company's facing financial distress over the intermediate term. 30-Day Average Volume is an indicator of a stock's daily volume for the past 30 days and indicates how actively the stock has been traded over this period. Setting the lower limit of this indicator at 150 excludes stocks with average daily volume tallies that are less than 150,000 shares. Low-volume stocks often command lower valuations because their lack of liquidity makes them less attractive to many investors than more heavily traded issues. ------------------ and now the stocks that turned up Symbol Name Group Options Trend Price BBA BOMBAY CO INC .RFU 3.000 SGAI SMITH-GARDNER & ASSOCS INC .DSO 3.750 TFSM 24 / 7 MEDIA INC .INT Options 13.125 FINL FINISH LINE INC CL A .RSP Options 6.437 MRCH MARCHFIRST INC .DSE Options 18.937 HLTH HEALTHEON/WEBMD CORP .HHC Options 13.937 TCTY TALK CITY INC .DSE 1.500 IVIL IVILLAGE INC .DSE Options 7.687 ASKJ ASK JEEVES INC OC-COM .DSE Options 16.812 FOGD F BBA has a a PE of 13 and a forward PE of 8 and has some insider buying, so if one buys and patient it could be a range trade on a move to 4.50. there is no catalyst for this to enter a bull market , but on a valuation basis, it's cheap, I was long it a few years ago but have not touched it in 18 months minimum. I long a bit of HLTH and was happy to see it show up on this list, some reasonable insider buying, biz.yahoo.com Mike, has previously suggested that this could be a longer term success story as people want medical info over the net, and if HLTH can leverage their leadership role, it might be a long-term buy and hold for the value investor. Obviously way off the highs. Maybe Mike can update his thinking. John