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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: RCVJr who wrote (5784)	11/6/1997 8:22:00 AM
From: Vol	Read Replies (3) \| Respond to of 14162

Maybe we could discuss possible new cc candidates. I'll get the ball rolling by suggesting some of the tech stocks that were beat up on last week and have positive near and long term futures Briefing.com had a list of the ten best tech co's that are undervalued as a result of this recent "tech wreck." Briefing's Top Ten 1.Andrew Corp. (ANDW 24 1/2): Supplier of communications systems equipment and services... Stock moved to low end of 5-month trading range during sell-off... On improved industry tone, look for return to upper boundary of range near 28... Near-term profit potential 14%... Chart 2.Applied Materials (AMAT 36 1/16): Supplies wafer fabrication systems and services to the global chip industry... Fell nearly 44% from recent highs in overreaction to currency crisis... Stock has bounced nicely off key support at 30... Near-term resistances at 40 3/8 and 43 3/4... Profit potential 12%-21%... Chart 3.Compaq Computer (CPQ 67 1/8): Leading designer, developer, manufacturer and marketer of PCs for professional and consumer users... Found support near 60, as stock held up reasonably well during retreat... Momentum favorite well positioned to ride short-term bullish wave back to 75... Profit potential 11.7%... Chart 4.Dell Computer (DELL 83 1/4): Designs, develops, manufactures, markets, services and supports a variety of computer systems including desktops, notebooks and network servers... Hit pretty hard during market retreat amid valuation concerns... But stock still way up for the year and this favorite of momentum investors should attract plenty of buying interest among s/t speculators... A test of resistance at 92, equals profit potential of 10.5%... Chart 5.Intel Corp. (INTC 78 1/2): World's leading designer, manufacturer and seller of microcomputer components... Another institutional favorite which took a pounding amid anxiety over overseas events... But key support at 70 held up nicely... Improved market tone leaves stock poised for test of gap resistance at 90... Profit potential 14.6%... Chart 6.Kulicke & Soffa (KLIC 26 5/8): Designs, makes and markets wire bonders, wafer saws, die bonders, micro tools and resistivity probes used in production of semiconductor devices... Down more than 50% during sell-off, stock has plenty of room to run during corrective bounce... Initial resistance at 30, but note gaps at 35 7/8 and 45 3/4... Near-term profit-potential of 12.7%... Chart 7.Novellus Systems (NVLS 46 3/4): Designs, makes and sells Chemical Vapor Deposition (CVD) wafer process equipment used in the manufacture of integrated circuits... Third entrant from the chip equipment industry, also saw its stock priced marked down sharply by concerns over events in SE Asia... But support in the 42-40 range held... Move back to the 53-55 area would represent little more than a 50% retracement of October decline... Should also be noted that company has minimal exposure to SE Asian region... Profit potential 13%-18%... Chart 8.Quantum Corp. (QNTM 33 11/16): Designs, develops and markets information storage products including hard disk drives... Weak tone in the group and the market weighed on stock despite its solid earnings growth and discounted values... Not surprisingly, stock found good support at 30... Look for return to upper end of 3-mo trading range marked by 40-42... Profit potential 19%-25%... Chart 9.Sun Microsystems (SUNW 36 5/8): Provides hardware, software and services for establishing enterprise-wide intranets and expanding the power of the Internet... Poor market tone and disappointing earnings report combined to send this group leader down nearly 36% off its recent highs... Bargain hunters likely to propel stock up to near-term resistance in the 41 area... Profit potential 12%... Chart 10.Texas Instruments (TXN 115 1/8): Global semiconductor company... Dropped nearly 40 points from its mid-October high, but rallied off support in the 100 area on two occasions... Corrective rebound to the 127-130 range very doable... Profit potential 10%-13%... Chart I would also add COMS to the list. Vol