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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: Johndee who wrote (8317)	8/21/1998 6:30:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

THRT is a fairly slow moving stock with a TRO of 137.17 days. THRT growth rate of 35% vs. 21.1 P/E makes it an undervalued stock at this point. Insider trading indicates buying which is a good sign. I would be concern about CCing THRT since the option interest is anemic and may not offer enough room to buy/sell and cover at times. P/E VALUE NASDAQ: (THRT : $8) $167 million Market Cap at August 21, 1998 Trades at a 38% Discount PE Multiple of 21.1 X, vs. the 34.2 X average multiple at which the Drugs SubIndustry is priced. INSIDER TRADING Filed Action Shs. Price Trans. Filing Holdings EBERT CHARLES D O Acquired 37,500 $0.83 06/18/98 07/10/98 42,500 BB & RSI TECHNICALS bigcharts.com SHORT INTEREST With such a long TRO of 137.17 days the smallest increase in short interest is enough to stall the THRT price and send it into the next downward cycle. Since, the July OI was on the decline that might mean a lower BB tag and a reversal point is due. Short interest should be reported tomorrow in Barron's. I will update that figure for July 15 thru August 15 for a better picture. It should indicate a decrease in order for the stock to bounce back as normal. THRT TheraTech Inc. Month Shares Short Avg Daily Volume Ratio* Remark 07/98 257,575 103,036 2.50 1.82% of TRO 06/98 391,427 68,751 5.69 4.88% """"" drag down 05/98 315,469 107,282 2.94 2.14% """"" 04/98 220,557 60,867 3.62 2.64% 03/98 213,746 55,279 3.87 2.82% 02/98 111,568 189,917 0.59 .43% 01/98 264,333 101,575 2.60 1.90% 12/97 281,511 67,241 4.19 3.05% 11/97 304,130 63,810 4.77 3.48%