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

To: Carl Yee who wrote (1283)	6/25/1998 7:44:00 PM
From: Clase Azul	Read Replies (1) \| Respond to of 2506

Hi All, anyone short BB stocks or very low priced Nasdaq stuff?

To: Carl Yee who wrote (1283)	6/26/1998 4:50:00 AM
From: Q.	Respond to of 2506

Carl, PRST certainly has an ugly chart. It might be a good short, but I think you would have to base it on their valuation and the company's growth prospects, which I haven't attempted to do. What I did do is look at the financial statements, where I saw that they have positive cash flow and have been consistently profitable. As you suggest, this isn't the usual 'broken stock', since it doesn't have bad financial statements. On the negative side, they don't have a lot of cash, and last quarter's revenues was down sequentially for the first time since MarketGuide's data begins (in 1995). If in November the chart still looks this miserable, it will be a terrific tax-loss selling candidate, but it's premature to play that game in June.