Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Zapata (ZAP) -- Ignore unavailable to you. Want to Upgrade?

To: Ken M who wrote (218)	7/16/1998 11:40:00 PM
From: DanZ	Read Replies (1) \| Respond to of 1206

Ken, Here are some facts on a few Internet companies: Stock EPS 52 wk 52 wk Close Shares Shares TTM High Low Today Outstanding Float YHOO -0.77 207 1/2 29 15/16 186 11/16 46.3 mil 6.9 mil SEEK -0.83 45 4 11/16 33 3/16 31.3 mil 5.6 mil LCOS -5.92 107 1/4 12 7/8 70 9/16 18.5 mil 10.4 mil NSCP -1.96 49 1/2 14 7/8 33 1/4 98.4 mil 46.2 mil XCIT -1.84 111 14 1/4 91 5/8 24.7 mil 5.2 mil ZAP +0.60 24 15/16 5 22 13/16 23.2 mil 9.5 mil Ok, here's the question: Is Zap an Internet company? If it is, then the stock has huge upside potential and I wouldn't try to evaluate it based on fundamental analysis. How many people do you think lost their a*s shorting YHOO, SEEK, LCOS, NSCP, and XCIT? A bunch. People who shorted those stocks because they thought they were overvalued got waxed and IMO the same thing will happen to shorts in ZAP. This stock could easily go up more than some of the others because ZAP has earnings and is in very good financial condition. The other Internet companies listed above don't even have positive earnings and look at the valuation the market is giving them. You can stomp up and down and say it's ridiculous, but hey, that's the price and shorts are getting slaughtered. Unless you are lucky, you will not pick the top in ZAP or any other Internet stock. There isn't anything in the chart that leads me to believe ZAP has topped. If anything, the chart points to higher prices given the momentum, money flow, and pattern. I don't think you can evaluate ZAP based on fundamental analysis other than to compare its valuation to other Internet companies. The question remains: Is Zapata an Internet company? Given the rise in the stock, it seems to me that the market is answering yes. I will say this: ZAP is without a question the strangest acting stock that I have ever traded. Late today, I saw over 900,000 shares on the bid disappear with almost no trades. Earlier, I saw the bid size grow from 100,000 to 200,000 to 400,000 only to see it disappear in a flash with very few trades going through. When I first saw the bid size growing and the stock moving up, I thought a fund was trying to buy a lot of stock. But then I got confused when I saw the bid size disappear without warning and the stock tank 1/2 point in a matter of minutes. Then the big bid size returned and the stock moved up again. Very strange indeed. Another thing to consider is that most of the Internet stocks have a very small float, including ZAP. It doesn't take much to move these stocks given their large average daily volume and small float size. It's a matter of supply and demand...lots of demand, very little supply, up they go. I'm certainly not suggesting that the demand will continue, but this is the main reason why these stocks make such big moves in a short time. I am trading ZAP from the long side only, day trading part of my position and holding part over night. Good luck if you are holding a short position more than a few minutes but I think you are fighting the trend, and as we have seen with other Internet stocks, that is a losing proposition. Best of luck, Dan