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

To: Dale Baker who wrote (993)	4/8/1998 1:49:00 PM
From: drakes353	Read Replies (2) \| Respond to of 2506

Hey Dale: I'm short PRST as well. Looking at the chart I'd say there is risk up to the gap at around $18.50 I'd happily add to my position up there. Just guessing but I imagine we're in a short covering induced dead cat bounce at the moment. As of the close yesterday PRST was selling at around 5x sales, 33x cash flow, 6x book and sported a PE of around 33. The momentum players have bailed and the value players shouldn't get interested until it gets (well) below $10. Another one worth looking at in the same genre, guess I'd call it a "breaking stock", is SMTK. Great write-up on them in theStreet.com the other day. Large, sustained short interest, questionable accounting and a somewhat silly underlying business (pre-paid phone cards.) Stock is at $21.875, down from $35 a couple of weeks ago. At $24 I'll probably stick my toe in the water. drakes353