Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Netscape -- Giant Killer or Flash in the Pan? -- Ignore unavailable to you. Want to Upgrade?

To: Fernando Saldanha who wrote (1880)	1/5/1998 6:53:00 PM
From: Leo Francis	Read Replies (2) \| Respond to of 4903

Okay, the fundamentals just imploded. Time to start trading "both ways" again. I have traded NSCP (versus "investment") because of its volatility, and have profited nicely, even with today's major "ouch" on my recent trade. So now what? Today I sold half of my position at the open at 17 3/4 (ouch!), and the other half in the PM at 18 5/8 (little less ouch, but ouch nevertheless). Upon the sale of my last long position, I sold short at 18 11/16, about 1/3 of my "budgeted trading amount" in NSCP.(Keep in mind, my total trading account only acccounts for about 25-30% of my total portfolios, and NSCP is only a potion of the trading account. I say this for perspective.) On a fundamanetal basis, it appears to me, that with this recent warning about severely reduced revenues, and an apparent severe slowdown of future growth, and questionable profits, that NSCP market cap could easily drop to 800-900 million dollars, or 9-10 per share on strictly a fundamental basis. I do not think that it will though, because of the high level of traders in the stock, but it could without some positive fundamental developments. With client server revenue taking a huge hit, even the DOJ developments on the browser may not be enough to erase a further slide. I agree with TLindt, that $15 looks like a technical buy (close short, enter long for example) at this point. In any event, this inherent volatility with NSCP is the reason I have traded it, rather than hold it for an investment. I almost held, and made my trade a "long term investment" today, but decided against it, based on the very troubling fundamental release today by NSCP. Now, I am researching another company which sports 110 million in sales, is/will be profitable in 1998, is growing, and only has a market cap of 20 million dollars, with only 3.5 million shares outstanding, and a float of only 800K! I'll post after a little more research for those curious. Good Trading, LF