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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: sammy levy who wrote (86)	1/3/1998 3:10:00 PM
From: Dale Baker	Respond to of 18691

I don't have a magic number in mind. Three factors are at work here: first, shorts covering to get profits in the 1998 tax year and/or covering when they feel a squeeze; second, the general sentiment that Y2K companies just HAVE to take off now that we are one more New Year's Day closer to 2000; and third, the remote but conceivable possibility that ZITL might scare up a contract from someone for a million or two, which would in turn fuel factors one and two. Realistically, I don't expect any imminent contract announcements because they would have sold their portable factory service by now if it worked. Lots of Fortune 500 companies - albeit not all - have started Y2K work in cases where they don't plan to replace their systems altogether. Also, the U.S. government only gets in gear again on Monday and I doubt anything big will be announced in the next week or two. That's just a guess. I'm sitting here in Mauritius with no repeat no direct knowledge of government Y2K contracting status. Finally, I expect one of the big tech companies to blow their earnings and send the market into a tailspin by the end of January, if Asian news doesn't do that on its own. With short covering spent (say by 12 - 14) ZITL will fall like a rock in a general market exodus. THIS COMPANY DOESN'T MAKE ANY MONEY. Just watch ZITL and run the TA charts every day. I'll post a note here if/when I short ZITL again. Good luck.