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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: Vol who wrote (5785)	11/6/1997 10:48:00 AM
From: Douglas Webb	Read Replies (2) \| Respond to of 14162

I can add two to that list: Ugly Duckling (UGLY $12 1/8) quote.yahoo.com This stock peaked before the 'dip' last week and was already in it's downtrend when the markets dropped, carrying the stock price two dollars lower than I expected. On Oct 29 they reported record earnings (47% suprise) before a one-time charge. VectorVest values UGLY at $24.60, with a growth rate of 29%. Now is a good time to buy; UGLY showed some resistance at the $11-$12 range, and has started recovering. RSI and Stochiastics are pretty good for a buy now too. The Nov 12.5 put can be written for $0.6875, if you want to take that approach. InVision (INVN $10) quote.yahoo.com This stock was also downtrending when the market dropped, and I eventually had to sell it out at a slight loss to prevent a margin call. It also reported record earnings for Sept. VectorVest values it at $17.20 (before the earnings they valued INVN at $14.20!) The growth rate is 42%. You may want to wait a bit to make sure the downtrend is over, but even at $10 this stock is a steal. They have backorders for their explosive detecting equipment which should take them through another year of operations at current capacity, and they're working to increase their capacity for the next year. If I had the cash, I would probably buy this one back pretty soon. I'm also hold Creative Labs (CREAF) which has weathered the market meltdowns really well. I'm hesitent to recommend it though, because it seems to always be on the verge of breaking upward, but hardly ever doing it. If it dips to $25 again, buy a bunch. If you're willing to hold and wait six months, buy a bunch. If you're looking for a quick recovery from the past two weeks, look elsewhere. Doug.

To: Vol who wrote (5785)	11/6/1997 7:24:00 PM
From: Zach E.	Read Replies (1) \| Respond to of 14162

Vol, Here are a couple of others that I have been looking at: WFR - World's 2nd largest producer of silicon wafers. Had earnings troubles lately, partially due to demand, partially due to R&D expenditures for producing 300mm (the next big advance) wafers. P/E - NM, P/B - 1.1, P/S - 0.9, IV - 53% MUEI - 4th largest direct-seller of PCs. Definitely not experiencing growth like CPQ or DELL, but doesn't have the valuation of those Wall Street favorites, either. P/E - 14, P/B 4, P/S 0.7, IV - 63%. I'm looking at both from a primarily FA point of view, although I think that they are probably both oversold technically as well. Zach