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Strategies & Market Trends : How To Write Covered Calls - An Ongoing Real Case Study! -- Ignore unavailable to you. Want to Upgrade?

To: virgil vancleave who wrote (8270)	8/18/1998 5:39:00 PM
From: Herm	Respond to of 14162

I'm in TKLC as of today for 5 TKLC PUTs Sept. 17 1/2 @ 7/16s. I'm resting easy knowing TKLC will pull back. The BB has not been tagged and the RSI is very week and barely over +50. This current ride up cycle is the third TKLC attempt to reach the recent 52-week high of $25.88 set on April 29, 1998 on less volume than before. Now, add to the fact of the TKLC 2-1 split on July 06, 1998 at $22 3/4 and it has only moved up to $24 5/16s (approx. 7%) as of today. The volume punch is no longer there and the stock is overvalued with a TKLC growth rate of 45% vs. 26.7 avg. industry P/E. Doug's TRO float indicator list TKLC as 16.23 days to turnover 100% of the entire float. Well, that would be a heck of a pull back if that many shares are dumped! NASDAQ: (TKLC : $24 5/16) $1,247 million Market Cap at August 18, 1998 Trades at a 66% Premium PE Multiple of 44.2 X, vs. the 26.7 X average multiple at which the Computer Peripherals SubIndustry is priced. Finally, from the looks of the insider selling I would say that the CEOs know it is payday peak! The upper $40s pre-split would be equal to the current $24.00 folks! Surely, they would have held on to their shares if they expected a bigger payoff. They have done GREAT for TKLC over the past year. It is now time for a rest! TIMBER! BUCKLY RONALD W O Disposed 1,000 $22.50 07/30/98 08/06/98 S ASSCHER JEAN CLAUDE DO Holdings 07/10/98 376,592 ASSCHER JEAN CLAUDE DO Disposed 26,375 06/30/98 07/10/98 G ASSCHER JEAN CLAUDE DO Disposed 26,375 06/30/98 07/10/98 G ASSCHER JEAN CLAUDE DO Disposed 5,000 $47.13 06/09/98 07/10/98 S SUZUKI SHIGERU O Disposed 5,000 $46.42 06/08/98 07/09/98 S SUZUKI SHIGERU O Disposed 5,000 $46.88 06/08/98 07/09/98 S ORINGER HOWARD O Disposed 3,000 $45.25 06/05/98 07/09/98 S ORINGER HOWARD O Disposed 7,000 $45.00 06/05/98 07/09/98 S ASSCHER JEAN CLAUDE DO Disposed 5,000 $45.63 06/04/98 07/10/98 S GARDNER SCOTT R O Disposed 10,000 $48.36 05/19/98 06/08/98 M SUZUKI SHIGERU O Disposed 5,000 $48.00 05/15/98 06/10/98 S SUZUKI SHIGERU O Disposed 8,000 $46.13 05/15/98 06/10/98 S GODIN GILLES C O Disposed 47,040 $48.00 05/14/98 06/08/98 S BOYD CECIL O Disposed 3,740 $48.13 05/14/98 06/08/98 S Pull back to $15 would be my best guess for a consolidation.