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 : NewCom (NWCM) -- Ignore unavailable to you. Want to Upgrade?

To: Jason Flora who wrote (587)	8/20/1998 11:40:00 PM
From: Cool Hand Luke	Read Replies (1) \| Respond to of 662

The short position you quote is for the month ended June 30. July 31 short positions in NWCM will be available next week. It will be interesting to see how the Dreyfus long positions - which are expected to be under 200,000 now, will correlate to the short positions. Have the shorts been buying Dreyfus shares to cover? Yes, if they were smart. If not, they now have the following difficulties to overcome over the next four weeks: 1. An announcement of a formal investment banking relationship. 2. A bridge loan which will be an all debt (no equity features) deal. 3. Completion of the Simple acquisition. 4. At least two South American deals. 5. The opening of sales and distribution centers in Europe, starting with France, the second largest computer peripheral market in Europe behind Germany. 6. Second quarter earnings at least 20% better than 2Q last year. I hope everyone noted the story in today's WS journal about Massachusetts threatening to revoke Joseph Charles' licence. As part of their CYA policy, JCA will probably downgrade its rating on NWCM. Nice work, boys. Trash the stock, then downgrade it. It will be interesting to see what possible reasons they will provide. Trading at 9 times trailing earnings, 7 times projected? Short of cash because of their explosive growth? .... When they had a strong buy on the stock, their brokers were selling. We can now look forward to a buying spree at JCA which, given the attractive levels of the price, shows that maybe the brokers there are smarter than the people running the company after all. Today, according to Second Level, JCA brokers were the big buyers into the Dreyfus selling. One final note. Dreyfus does not care what price they sell their NWCM stock at, as long as it goes down - because when it goes down, it seems like they did the right thing. If it goes up, they come under fire for selling at a ridiculous price a perfectly good company that ended growing after they sold it. Paul Loroco, the new manager, has made our life a misery over the last three months with all his mindless selling. I am looking forward to a reverse of this - watching the shares he sold at $6-$8 going to $20.