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


To: Mama Bear who wrote (7314)4/19/1998 5:28:00 PM
From: McNabb Brothers  Read Replies (2) | Respond to of 18691
 
Barbara,

I'm not making a case for or against KTEL, but the Baron's article will make it have a brief sell off then off she goes again IMO! Go back and see how right Baron's has been the last 6 months or so, not very often! When Baron's and other news publications announce the internet is the place to be, that will be time to sell them! Was in a Gateway 2000 store yesterday talking with a young sells lady whom was saying if she had the money to invest that the internet is the place she would be looking to invest in! Asked her why, and she said everyone was buying computers to be on the internet and she figured money had to be made from it if everyone was buying a computer for the internet connection!

This may be a very good sign for all shorts, for I did take a long position in KTEL at $20 and change last week! Never in my life did I think I would ever buy something like an internet play! My real reason I bought it was the low P/S ratio and it is making money and the very low float! Could be a very good hedge against some of the other internet stocks that I have short! If it does show weakness in the morning I'm going to be a buying of more just like all the other internet stock players have been doing with the other internet stocks! I believe a great hedge play would be long KTEL and short CDNW and NTKI!

let the market open and see whom will be right tomorrow on KTEL!

Hank



To: Mama Bear who wrote (7314)4/19/1998 8:12:00 PM
From: Investor-ex!  Read Replies (1) | Respond to of 18691
 
Barbara,

I was using the approximate 12 month range, ~5 to ~30, ~+500%.

7 to 28 is a 300% rise (4x) :o)

Here are P/S ratios for some MAJOR retailers:

Sears .55
K-Mart .28
Wal-Mart 1.03
(Source: First Call)

K-Tel is not in this class.

Check their 5 years earnings history -- very spotty and irregular.

I will post results of Monday's drive-by/visit if I get off work early enough.

Regards,