On Saf-T-Lock
(From Briefing.Com)
12:05 ET ******
SAF T LOCK INC (LOCK) 5 1/2 +1 3/4. Stock Investor Trading News did it for K-tel (at least temporarily), now the shares of gun safety lock maker Saf T Lock are being lifted by the comments of an unknown that is using the Internet to disseminate its "analysis." We are not sure exactly what Woodward Trading Company is: a brokerage firm, a trading outfit, or a newsletter? Most important, we have no idea if the company has a stake in LOCK (though would guess that they probably do). Nevertheless, in spite of the lack information, investors have pushed LOCK shares 47% higher on the session on robust volume of 6.4 million (vs avg. daily of 279,000). The latest round of LOCK interest is being sparked by the Woodward Trading initial "strong buy" rating issued this morning, as well as the extremely aggressive, attention-grabbing price targets that accompanied the rating. According to Woodward Trading (which we had never heard of before today's press release), LOCK shares could soar to $12-$15 over the near-term, citing "a changing political environment and expanding fundamentals.: Specifically, the firm is referring to recent legislation enacted in New York City requiring all handguns sold to come equipped with child safety locks and a $6 million order the company received recently from distributor D & W Enterprises. Over the next 12-months, the firm sets a seemingly insane price target of $30 per share, 500% above the stock's current price. But, the hype doesn't stop there. In case these moves weren't enticing enough to lure traders into the stock, the firm offers another angle: the Internet. According to Woodward, Saf T Lok (www.saf-t-lok.com) will use the web to link, distribute, and retrofit existing firearms throughout the world. Easy access and all the convenience of the Internet, will enable Saf T Lok to penetrate additional markets. We've heard this type of hype on LOCK before. But one look at the chart will quickly reveal how slim the chances are that the stock will make it to $8 before crashing, let alone $30.
10:31 ET Saf T Lok Inc (LOCK) 4 3/8 +5/8 (+17%): Never heard of them, but anonymity hasn't stopped recommendations from running up some shoddy stocks in the past. This morning, Woodward Trading Company initiated coverage of gun safety-lock maker with a "strong buy" rating and a 12-month target of $12-$15. Cites "changing political environment and expanding fundamentals." Didn't pick up on this at first, but Woodward pumping company as an Internet play. Says LOCK will use the web to link, distribute, and retrofit existing firearms throughout the world. "Easy access and all the convenience of the Internet, will enable Saf T Lok to penetrate additional markets." Volume 1.4 mln.
Saf T Lok <LOCK.O> shares jump in heavy trading
ATLANTA, May 27 (Reuters) - Shares of Saf T Lok Inc., the
Florida-based maker of handgun locking devices, surged 36
percent in heavy trading on Wednesday with the company the
second-most active on the Nasdaq stock market.
Company president John Gardner was in Washington, D.C. and
not immediately available to comment, Saf T Lok said.
But the buying pressure came a week after a deadly shooting
rampage by a student in an Oregon high school cafeteria stepped
up pressure on lawmakers to require handgun makers to install
such devices on handguns.
The stock was up 1-1/4 to 5 with more than 14 million
shares traded. Earlier in the session, shares touched a new
52-week high of 6 a share. At its peak, the stock was briefly
worth $20 a share in May 1996 before a steady decline set in.
last time the stock was worth $6 a share was in March 1997.
Woodward Trading Co said Wednesday it started coverage of
the company with a strong buy recommendation, citing the
changing political environment and expanding fundamentals.
It also noted said that Saf T Lok plans to use the web to
link, distribute, and retrofit existing firearms from its web
site. (www.saf-t-lok.com).
Woodward Trading was also not immediately available to
comment. ((J. Westhoven, Wall Street Desk 212 859 1881))
To: bullrider (666 )
From: Tekktrader
Wednesday, May 27 1998 6:52PM ET
Reply # of 670
Bullrider-- I have many posts laying out why this is a terrible stock and a great short play.
I'm sorry, I have not seen your prior posts. But if SI keeps my records back far enough, you'll see that I was all over this pump and dump MONTHS ago. I laid out all the evidence of this scam, and the scammers and sheep/longs on this board responded by either attacking me or burying their heads in the sand.
This is an unbelievable scam, and I'll just summarize the reasons here because I'm late for dinner and very hungry. And by the way, my average sell price on LOCK is now over $5, so I'm not all that worried. As far as my other favorites go, I've done nothing but make money on Mindspring, Earthlink, Worldcom, AND Concentric. I dwell on CNCX because I believe that one has the biggest upward potential now among the telecom/ISPs. The others have pretty much settled into fair valuations, IMHO, but I think CNCX has a long way to go before it tops out.
As for LOCK:
1. Reg-S offshore financings last year are hysterical. Read the SEC filings. They may as well have stamped "STOCK SCAM" on the front cover!
2. An overly-priced, inferior product that has been negatively evaluated by Smith and Wesson, Colt and other manufacturers, all of whom chose to go with another OEM strategy.
3. A "distribution" channel that consists of Arthur Braun (who is one of the offshore investors holding cheap stock!) and D&W Enterprises, a NY-based LIQUIDATION firm specializing in distressed merchandise (fitting, don't you think?)
4. Have you checked out the PR firm that backed this scam out of the gate? Notorious con artists, who also brought us SLIC! Another pump and dump, now a fitting partner for LOCK. Much negative press out there about MDC and its tout newsletter.
5. State Street Securities? Done any checking there? Woodward Trading? The bottom of the barrel, all the way around.
6. Insider sales galore by mgt and founders as the stock was pumped last year! And 7 employees! Most of whom apparently work on press releases and investor relations. Certainly not SALES.
7. NO SALES to speak of in the company's entire history. And if you think the $250k or so they booked last quarter was real, then wait to see what happens when AB's firm can't sell any of the product and defaults on the receivable, and LOCK has to restate the quarter. Of course, by then, the stock will have long since collapsed and Arthur and the boys will be counting their money in the Caymans.
Bullrider, I've done more homework on LOCK than ANYONE on this board, and I can tell you its a LOCK-cinch short. This stock is a near-zero within a year.
Just my opinion.
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