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

To: Bill Wexler who wrote (1408)	1/24/1998 7:39:00 AM
From: Dale Baker	Respond to of 18691

One of our accounting gurus needs to check out LAMR, Lamar Advertising. Enormous PE, huge long-term debt which is growing, accounts receivable going up as fast as revenue....could be another WDRY. Still has four strong buys. TA says it is vulnerable to a pullback. I'd be interested in a non-amateur's perspective on the finances. AFCI - poised on the edge TA-wise. If it continues to reverse and go up it will have broken the 26 - 33 trading pattern. Stochastics could go either way. Watch carefully Monday. I have a tight stop if the answer is bad for shorts.

To: Bill Wexler who wrote (1408)	1/24/1998 12:30:00 PM
From: Brad Davies	Read Replies (1) \| Respond to of 18691

Bill, thank you very much for the explanation. I suppose the key to this strategy is the size of the premium on the put and the time to expiry. Provided you are willing to sacrifice the potential for a windfall (ie if the stock breaks down in a big way), you can substantially increase your returns over short periods of time. Would you agree with that analysis. Are you implementing this on any other stocks besides LCOS. Does the premium make it worthwhile on ZITL, AVNT or YHOO (stocks I seem to recall you have an interest in) Regards, Ron