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Technology Stocks : Exide: Overbought or bargain? -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (94)	8/23/1998 10:12:00 PM
From: Creditman	Respond to of 125

Max .. I am not a battery expert or anything, don't know much about EX fundamentals but I bought EX options last week. I saw their share price drop to around book value and saw them come off the watch list so I bought Calls. This looks to me to be a technical bounce. A dead cat bounce kind of thing. It had just gone too far down or everyone who wanted out is out or whatever. I am a short term trader so I'll sell my calls soon ($12 1/2s). In this miserable year for tech stocks this is about the best pick I've had ... so far anyway.

To: LTK007 who wrote (94)	8/23/1998 10:51:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 125

There can be no buyout without the consent of the controlling shareholders who happen to be the management team. Therefore, there can be no hostile buyout. This stock is subject to abrupt drops imo. This is caused by 1)analysts' perception that the CEO has misled in announcing or predicting earnings; 2) on-going investigations by SEC and Florida (maybe more states coming) about EX selling used batteries as new; 3) updates on these issues and the ability of the CEO in special articles in Barron's (two + followup articles so far, I think.) Therefore, imo, this stock should only be bought by those with a very long term perspective (especially as the company isn't making anywhere near the returns it made its better days) who can weather the downdrafts this stock experiences and imo will continue to experience. I am long the stock because I buy into the business model, they are the gorilla of battery retailing, the stock is selling below book value, they've shown when things go in their favor -- bad weather (that's good for battery sales!)and if they can get lower prices on lead (they weren't hedged in their European ops in '97, I think also this year)-- they should be able to earn a decent return on equity. I am also hoping the lawsuits and allegations facing the company are not as damaging as appears now; but if they are... then I hope these issues can be resolved and put in the past.