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.

Strategies & Market Trends : 50% Gains Investing -- Ignore unavailable to you. Want to Upgrade?

To: Dale Baker who wrote (383)	1/7/1998 11:57:00 AM
From: David Rubin	Read Replies (1) \| Respond to of 118717

One stock which is shining lately is NETA. As you probably know it was battered in the last half of 1997 due to law suits and the McAfee/Network General merger. But recently this stock is showing the first signs of a rebound. For the first time in a long time the trend appears to be upward. Even over the past few days when the market has been in turmoil, NETA has held steady and even posted modest gains. It has now closed over 53 for three days in a row, passing stiff resistance at 52 1/2. If you look at the chart, you'll find a remarkable similarity between February thru May (just before MCAF rocketed from 50 to almost 80) and October to present. If history repeats itself, NETA could be due for another very strong rally. Value-wise, NETA is trading at 22 times 1998 earnings estimates, yet is projected to grow at 40%. It is trading at about 30 times 1997 estimates. Future estimates are conservative since there is uncertainty about the success of the merger. If the overall market conditions improve I think NETA is poised for a nice rebound.

To: Dale Baker who wrote (383)	1/11/1998 5:25:00 AM
From: Dale Baker	Read Replies (2) \| Respond to of 118717

It's not polite to say I told you so, but Friday's action tends to confirm what I've been seeing in the NASDAQ lately. A new source of concern comes from looking at the NASDAQ and the MACD analysis after Friday's close. First, the NASDAQ broke through its 200-day MA for the first time since April. If it breaks through the psychological 1500 barrier and extends this fall below the 200MA, it could easily go down another 40 - 60 points. INTC earnings on Tuesday will have a lot to do with whether this happens. Second, despite the above, the MACD lines above the median STILL HAVEN'T CROSSED. This could foreshadow another move up and a confirmation that they won't cross. On the other hand, another move down with a firm line cross means we could be in for a further drop below the old 1500 resistance. Enough bad news. If the sun comes out on Monday and the NASDAQ futures are up before the open, my best picks for short-term gains are AMTD, AMZN, ATLPA, CGN and maybe WCII if it's not too overbought already. On the short side, a down day would make shorting CMOS, SEBL, ITWO, PMTC, TSS and ZONA attractive. If you are shorting, watch out for a down open and a whiplash reversal during the day. Overall this week is not for the faint of heart. Good luck all. P.S. I haven't dug into PUMA or NETA in detail but their high PE's would put me off for the moment.