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

To: Joey Two-Cents who wrote (3714)	2/27/1998 4:46:00 PM
From: Keith J	Respond to of 18691

I realize large insider selling is usually a negative and that the huge price gains in BBY make it an obvious candidate, but when you compare BBY to CC, which is its closest competitor, you'll find that BBY is undervalued, at least on a price-to-sales basis, when you do the comparison. And for that reason, I don't think it's an obvious short at these levels. Earnings projections will likely change after their next earnings announcement. And much of their products are imported from Asia, which will help margins going forward with the strong dollar. KJ

To: Joey Two-Cents who wrote (3714)	2/27/1998 5:13:00 PM
From: Ploni	Read Replies (1) \| Respond to of 18691

Subject: Retailers I personally think that BBY is overvalued, but haven't shorted it. Today I covered half of my WDRY short, upset by a lack of follow-through on Asensio's part, or anyone else hammering it. I made a small gain. This is an extension of my "buy high, sell low" investment strategy: "cut my gains short, and let my losses run." I used the buying power to buy some puts in NOBE, Nordstrom. Earlier this week, the company announced that their February sales are weaker, due in part to nasty weather in California, where 38% of their floor space is located. biz.yahoo.com The market seemed to ignore that little tidbit. The company also announced that they were going to write debt (commercial paper) and buyback their stock. That seems sort of strange to me, and S&P wasn't too thrilled about it, either. biz.yahoo.com I was pleasantly surprised to see ITWO drop nicely today. If it drops another point and a fraction, I'll be in the money, which would be a nice feeling. Then there's SEBL and YHOO. Oh, well; at least I'm not short AMZN...