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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Bill Wexler who wrote (7979)	12/8/1997 4:02:00 AM
From: GARY SETO	Read Replies (1) \| Respond to of 9285

S&P futures up strong at 4am et. Up 11+, what is affecting the S&P to move this much at this hour? The asian market seems mixed with Japan down and the other without signifacant gains. With the exception of Malaysia, up 12%. any comments? gs

To: Bill Wexler who wrote (7979)	12/8/1997 9:30:00 AM
From: Don Westermeyer	Respond to of 9285

Bill, CVC is another example of a stock that has gained from having small liquidity and apparent momentum. How they can bet by not issuing stock to pay for those massive losses is beyond me.

To: Bill Wexler who wrote (7979)	12/8/1997 1:35:00 PM
From: Eric Klein	Respond to of 9285

CVC - My guess is that there is speculation that if cable modems become popular then all the cable companies will suddenly become much more valuable. Then CVC would be a takeover candidate. I don't really subscribe to this view. For one thing, the cable infrastructure is not suitable for two way digital packet transmissions. It will take a whale of a lot of new investment to upgrade their infrastructure, and of course CVC is heavily in debt already. It may not be easy for them to borrow the type of money that such an upgrade would require. They just bought Radio City Music Hall. Excuse me if I'm wrong, but why would a company that's so much in debt hang an albatross like that around their neck? What kind of a market is it in which a company that's losing money hand over fist like CVC keeps going up because in the future it could become a takeover candidate if a sequence of improbable events occur. But of course in this market illogic is king. A logical argument that CVC is overpriced is a strong indicator that the stock price will go up.