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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: bob who wrote (3255)	7/15/2000 9:38:49 AM
From: Zeev Hed	Read Replies (1) \| Respond to of 30051

I think that EXDS is a good company, but to achieve their goal they had to take on a lot of debt and furthermore, they may lose a lot of their smaller .com companies. Thus I would be careful. I see a lot of overhead resistance around the $58/$60 area, and I do not think it will go through it. It is an excellent trading stock, but I would not be a long term holder. The reason is that you may find an air pocket like TFS just found this week any day. You also must realize that they are extremely leveraged both financially and business wise. If the .com craze continues they may indeed succeed. Mind you they compete in a way with real deep pockets companies like IBM. Currently they have a market cap in excess of $20 B and you must ask yourself how long (and how much more capital)it will take them to get from their current sales rate of of about $.6 B to $20 B. It is a momo stock, but it could be an accident waiting to happen. I play the MOMO but always have an eye to the exit. Zeev