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Strategies & Market Trends : Shorting stocks: Broken stocks - Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Funda who wrote (939)3/19/1998 8:10:00 PM
From: Eric Klein  Read Replies (2) | Respond to of 2506
 
>JCOR, LAMR, OSI - All seem to be overvalued.<

I think they're overvalued too,
JCOR Price / Sales = 5
LAMR P/S = 9
OSI P/S = 7.5

I can add another to your list:

CCU P/S = 12

The only thing is that I don't understand how they got so high, and I don't know what could bring them down. JCOR and CCU are primarily radio station holding companies. It is believed that when a company can control a certain percentage of the stations in an area they they will have pricing power, but with the P/S so high, I don't understand how that's going to translate into profits.

What, in your opinion, is the event or circumstance which will cause these stocks to fall?



To: Funda who wrote (939)3/20/1998 5:27:00 AM
From: Q.  Read Replies (1) | Respond to of 2506
 
Funda, this thread is for small cap stocks, mostly those that have been going down. The stocks you listed, JCOR etc., are bigger than $1 B market cap, and near their 52 week highs.

We have a another thread for shorting high lier stocks, Subject 15251 if you want to discuss them there.