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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (33023)	8/27/2000 6:54:25 PM
From: Mao II	Respond to of 57584

M. Is: CITC is taking on debt to fund some important acquisitions -- not the most-favored street strategy these days. Hence, prior to reporting last quarter, there was a broad sell-off in the stock. The second quarter came in, however, with VERY strong numbers for cash flow -- and every other measure of growth. biz.yahoo.com Cash flow is indeed very strong and looking ahead, the company says growth will remain in double digits. Analysts responded by increasing targets for this year and next (CSFB, HQ). Lehman opened coverage with a buy. Targets range from mid-40s to 60s. The market responded by driving the share price down 20 percent. It has now opened up a new low, and as you correctly note, was a shorting opportunity -- and might still be. The news that LA radio ad revenue was not as robust last month as had been hoped triggered a selloff in a number of radio stox last week. For CITC, the selloff was particularly sharp, perhaps because of lingering concern over the debt issue. However, growth in cash flow will reduce debt ratios considerably over the next year. ANd it is very difficult to translate what is happening in the LA market to the midsize markets favored by CITC (Modesto is its only CA holdoing, for instance). SO, bottom line right now is that the technicals are pisspoor for CITC, stochs, MACD, RSI are not good. I am accumulating shares as a position hold. I began adding here in the 20s. This stock is, I believe, far and away the most oversold in the quality radio sector. Hope this helps. M2 PS Thanks for the welcome!