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Technology Stocks : TEXN -- Ignore unavailable to you. Want to Upgrade?

To: Laurens who wrote (31)	5/20/1998 9:30:00 PM
From: john griffin	Respond to of 55

INFO--- see end Subject: Mid-Morning Comments Date: Wed, 20 May 1998 11:57:01 -0700 From: "mike king" <kingm@ccweb.net> To: <Undisclosed.Recipients@esus.ccweb.net> 20 May 1998 1000 hrs Las Vegas Time Mid-Morning Economic Comments " Lack of Money is the Root of all Evil." ----------------George Bernard Shaw All news has been good. The Fed didn’t raise rates. Dell had great earnings, 44 cents vs the 42 cents expected by analysts. Revenues rose to $ 3.9 billion vs $ 2.6 billion last year as Dell surpassed Hewlett Packard as the third largest computer maker. In every geographic area Dell sales outpaced market growth by 3 to 6 times. They claim to be second in numbers to Compaq. Economic numbers continue buoyant with little in the way of inflation. The Dow rallied 2.49 points above yesterday’s high of 9,113.44 to 9,115.93, but has since softened, much like yesterday and is currently 9.22 higher to 9,063.87. Transports, which seriously lagged the market the past two weeks strengthened, up 31.55 to 3,391.33. Nasdaq, which was up 14.25 yesterday, is off 16.47 today. Only 2 of the ten volume leaders are higher, Ascend and Novell, while all the others are losers including DELL, with the great earnings, off 2 23/32’s, Intel off 2 7/8, Cisco, down 1 «, and Microsoft, off 15/16. The Diffusion Index, a ratio of high P/E multiple stocks divided by low ones, is weakening, an indication that an overall top is near. However, don’t bet all the family jewels on the short side unless you can be very nimble. That’s why we like using Puts as our method of testing the waters. You know exactly what you can lose and no more on a specific trade. The Dell June 90 Puts are a buy at the $4-5 level. We expect a decline to the $ 86-87 level where there should be support. However, make no mistake, the mkts remain very bullish. Meanwhile, Dressbarn ( DBRN) came out with great earnings 41 cents for the qtr about 5% better than expected, although the stock is down 2 13/16 to 27 3/8 as it did get a bit rich. However, most of our other Retail favorites are better. Gucci ( GUC ) is up _ to 46 11/16, Paul Harris ( PAUH ) is 15 1/8, up 1/16, Costco ( COST ) is up 7/16 to 54 9/16. The May Co is off 3/16 to 64 ¬. Kohls Corp ( KSS ) is hugging its all-time highs, up 1 « to 45 7/16. Saks is off 1/16 to 24 3/16, but still about 3 higher from our recommendation to buy just a couple weeks ago. Abercrombie & Fitch ( ANF ) is up 1/16 to 42 3/8 and AptarGroup ( ATR ) is off « to 65 ¬. They have all tacked on 20-25% to their value the past year. Nothing wrong with that....They are a lot slower in movement than the techs but you can sleep better and you don’t have to worry so much about the trend. UHAL, another of our favorites is trading at 331/4. If you haven’t bought it already you might give it consideration. Bulletin Board stocks we like today: AVRI, TEXN and TEIM. Teim is at just a nickel. Your chances of making a windfall profit, buying a little OTC BB stock at a dime and selling for $ 100 is much better than winning either Slots, Megabucks or the Lottery. You’re not supposed to use your food money. Timing is everything. Knowing when to buy is more important than what to buy.

To: Laurens who wrote (31)	5/21/1998 8:50:00 PM
From: john griffin	Read Replies (1) \| Respond to of 55

Info--see near end for TEXN, this is what I started getting after talking to the company. Subject: Mid-Morning Comments Date: Thu, 21 May 1998 09:27:46 -0700 From: "mike king" <kingm@ccweb.net> To: <Undisclosed.Recipients@esus.ccweb.net> 21 May 1998, 0900 hrs.,Las Vegas Time Mid-Morning Economic Comments Memorial Weekend Play Now in Focus Traders will be leaving today for a four-day holiday. Typically in a bull year the market trends over this period. Stocks such as GM and IBM should lead the way. Traders might want to participate through the use of OEX 100 Calls, Buying the June 540 and 545 Calls. Conservative traders might sell (3) 550 Calls against to lock in a profit. The idea is to profit from the possibility of a trending Friday-Monday combo, yet not expecting too much of a rally. The Dow is off 20.17 to 9,151.31. Transports are down 10.57 to 3,388.18. Nasdaq is off 2.96 to 1,828.79. The Phila Semiconductor SOXX is off 2.56 at 281.02. Our idea to sell Dell yesterday wasn’t bad. It fell almost 3 points and is off another 3 today. Target remains 86. However, don’t be greedy. 6-8 points is sufficient for two days. Other computer stocks were influenced negatively: IBM lost 1 « to 123 «. Gateway fell over 3 points for its worst close in a month. The negative balance of trade deficit of more than $ 13 billions in the red for March, is affecting hardware stocks. But that’s in the market…. Drug stocks have been very strong. Warner Lambert rose 4 15/16 to 202 9/16, while Merck gained 1 11/16 to 120 9/16. Bristol Myers rose 1 _ to 112 15/16. We like Mylan Labs trading 31 5/8 which also rose 1 1/8 yesterday. If you take the stock price of these companies and divide by the dividend of the sales divided by the stock price, you find that Mylan ( MYL ) is very well priced in that division. Pfizer ( PFE ) doesn’t trade to well, but would buy at 106. Another stock reasonably priced is Air products & Chemicals ( APD ) at 89 within 2 points of the all-time high. The May Co.,( MAY ) is poised to make a new all-time high. Applied Voice recognition ( AVRI ) had a nice move yeaterday. After making a low at 1 1/8, the OTC BB stock rose almost a point to 1 7/8. We continue to recommend TEIM at a nickel. It appears they are sufficiently capitalized to make a successful launch of the Vertex hair project. They have spent the better part of four years researching, testing and getting approvals. Another stock we like is 21st Century Technologies,Inc., priced in the 0.16-0.17 area, it looks cheap to us. It won’t be long before their earnings exceed this price number. For those interested in Y2K, the Year 2000 problems, we like Optical Systems ( OPSY ), which has doubled its sales the past year to year and month to month.