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Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: Johnny Canuck who wrote (36790)	4/18/2002 11:56:48 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 68311

Readers have commented about our mentions of intraday alerts. Readers can view these alerts on the market using this link buysellshort.com An earnings warning from Nokia, poor economic data, news of a plane crashing into a high-rise in Italy and cautionary comments from Fed President McDonough brought sellers into the market today. A weak opening as a result of poor numbers from NOK and lousy economic data was only exacerbated after news that a plane crashed into a high-rise building in Italy. ON this news the major indices hit their lowest levels of day. As usual the mainstream US media over-hyped the plane crash causing somewhat of a panic. Once the real story was released the major indices began to claw their way out of negative territory for the remainder of the day, closing the session marginally in the red. On the economic front it was reported today that unemployment hit a 19-year high, a further blow to the ever-waning confidence of consumers. The inventory replenishment cycle remains in full swing as evidenced by the fourth straight increase in the Philly Fed Index. Without the consumer however this economy will go nowhere, all points echoed by us here numerous times in the last several weeks. The fact that manufacturing has picked up but employment hasn’t speaks volumes as to the REAL state of the US economy. In after hours MSFT warned and thus some selling was sparked. A gap-down open is expected in the morning but traders should remember tomorrow is options expiration so there should be some very tradable volatility. Penny stock momentum should continue again tomorrow. Trading has been manic these past three days as penny stocks have gone ballistic. Such action is always found at near-term market tops. Abbey Jo Crook’s market call two days ago further solidifies the argument that a top is being put in place already. We have had some FANTASTIC profiles this week. GMGC (50%), SCNT (120%), and today PEOP which hit $0.24 intraday for a 100% gain! Yet ANOTHER profitable week for BuySellShort.com readers and the week isn’t over yet! Stocks to Watch: Digital Video Systems Inc. (DVID) is involved in the marketing and development of a variety of products and technologies in the digital video arena, such as video CD players, the design of decoder chips, networked video servers that provide near Video-on-Demand, digital Ad-Insertion systems that automatically insert digital video commercials into broadcasting programs, video players for commercial kiosk applications, DVD players under agreements with original equipment manufacturers or under the DVS brand name, and other products for the computer peripheral market. DVID manufactures loaders for DVD players and is To say DVID is a cheap stock would be an understatement given its $13m market cap on sales of $160m. DVID is trading at a price to sales of 0.08! Traders don’t need to be reminded that DVD is THE product of the year. The DVD market continues to expand at a rapid rate and this company appears ready to capitalize on it. DVID just recently completed a facility upgrade to add additional production capacity. Traders should also note that DVID manufactures its products in Asia, allowing it to meet pricing pressures in the market. DVID sells its products to APEX, the leading seller of low-end DVD players in the US. APEX has been stealing market share from the large DVD companies and continued market share increases by APEX will only benefit DVID. At first glance traders may be turned away by DVID’s debt to equity ratio. HOWEVER, further analysis shows that the increase in debt was capacity increase related and is being paid through cash flow generation. DVID has $13m in cash on ! its balance sheet and a float of only 3.7m shares. DVID appears to have put in a bottom on this current downtrend. Volume off this bottom today was very good and has no doubt flushed any remaining sellers out of the stock. DVID is a thinly traded stock so it doesn’t much volume to move it. A bounce back to the 200-day MA at $3.19 should be seen in the next few days. DVID rarely strays far from this average and usually bounces back to it rather quickly. Traders should keep a VERY close eye on this cheap gem of a stock. A little attention from the Street will go a long way here. DVID chart to consider: stockcharts.com[h,a]daclyiay[pc20!b200!f][vc60][iUb14!La12,26,9]&pref=G Traders should note that DVD’s Korean Subsidiary is preparing to IPO. quote.bloomberg.com DVID annual report: freeedgar.com