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

To: Pancho Villa who wrote (3341)	2/20/1998 3:59:00 PM
From: Eric Klein	Read Replies (5) \| Respond to of 18691

Pancho, on CIEN: Closed out the short at 41, down 17. Ummm, in this market, profits on shorts are hard to come by. I may re-short if it makes it back to 45. Tried to short TALK (Schwab, no shares available) which is up big ($28, +3) on news that they're trying to sell the company. The current market cap is $2 B, last quarter they lost $0.32/share, -$0.33/share for the year (would have been around -$0.48/share if not for tax benefits). They're the guys who paid AOL something like $100 Mil to advertise on their site. Now, I wonder, Who's going to pay upwards of $2 B for a company with sales of $300 M and an advertising bill of $100 M in a low margin business like long distance?

To: Pancho Villa who wrote (3341)	2/20/1998 4:45:00 PM
From: Pancho Villa	Read Replies (3) \| Respond to of 18691

To All: BFIT: IMO hedge funds are watching... Once a couple of big fish are short big time they will set the wheels in motion to: 1. Make sure the truth about the fundamentals of BFIT and their unattractive business get out. The fact that most of their revenues [membership dues and finance charges] come from a scam in which people are coerced/tricked into signing a 3-4 year contract which is virtually impossible to cancell, when they will only go to the gym the first two weeks of January!, will come out. [They manage to get a signature out of mature, experienced people, never mind an inexperienced 18 year old] 2. Make sure people with half a brain see how the financials/market facts clearly show this company does not stand a chance to improve profitability/cash flow to reduce debt and provide an adequate return to investors. [The 20% margin on membership fees won't happen. All the wonderful new sources of revenue won't materialize in Gym's half empty most of the years, and those attending getting their stuff somewhere else at lower prices]. IMO we should see a drop "RAYS style" on this one. IMO RAYS was a less dangerous long when it traded above 35 than this dog at 27. 3. Once someone is short into the millions they may get the legal wheels to start turning. Making people sign a 3-4 year contract that is virtually impossible to cancell and pay 18% + finance charges is definitely a scam. It may be legal but it is still a scam. It is not normal to expect an 18 year old kid [or any one] to make this type of a commitment. For example, a class action suit may develop/ and federal/state consumer protection agencies may step in. Let's see what happens to the stock price then. Pancho