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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Hank who wrote (13137)	8/26/1998 3:37:00 PM
From: CMason	Respond to of 18691

Hank -- I've been short ALTIF since 8. Short interest as of July was still pretty reasonable at about 4 days worth of average trading volume, although I suspect it's probably increased a bit since then. The only real drawback to the company as a short is that expenses are low, because of the lack of staff (it doesn't take that many people to put out press releases!). Accordingly, their burn rate is relatively minimal and they can stretch their cash a long way before having to do additional highly dilutive financing. They had $7 million in cash as of 6/30, with first-half negative cash flow of $622,000. Interestingly, there's been no indication of a ramp-up in spending to develop their product or their mining property. Accordingly, I'd expect the trajectory of the stock price to follow a slow decay, rather than a rapid implosion. Patient shorts should, however, be rewarded. Regards, CMason