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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: westpacific who wrote (794)	5/8/1998 2:12:00 AM
From: Bill Wexler	Respond to of 4634

At the current market cap it is grossly overvalued and I think that the physical dilution caused by the secondary and the entry of very strong competitors (ESPN is now the most popular sports site) makes this a strong sell. On the other hand, we are in the midst of an internet stock bubble and there could still be plenty of "greater fools" still out there.. Simply look at it this way: You are now being offered damn near $700,000,000 for a sports-only web site that has lost $9,000,000 last quarter on only $6,000,000 in revenue. Insiders have already cast their vote by dumping 2,000,000 shares in the secondary (a full 11% of all shares outstanding).

To: westpacific who wrote (794)	5/8/1998 5:00:00 AM
From: Bill Wexler	Read Replies (4) \| Respond to of 4634

SPLN short squeeze unlikely. SPLN short interest currently stands at around 670,000 shares (end of April). This means that less than 2 days are required to cover. With 4 million new shares recently dumped into the float, the overall float standing at about 50% of all shares outstanding, and the stock trading near its all-time high, I believe that it is very unlikely a short squeeze can be effected. No one is going to be calling back the 2 million shares the insiders just dumped - since most of those shares probably ended up being distributed to small fry. I believe that we are now in the exact same situation as USWB...a secondary being offered on top of buy recommendations issued by the underwriters. USWB proceeded to collapse soon afterwards from the high 30's to the low 20's.