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Strategies & Market Trends : The Art of Investing -- Ignore unavailable to you. Want to Upgrade?

To: Bald Man from Mars who wrote (31)	9/2/1998 5:49:00 PM
From: Sun Tzu	Read Replies (1) \| Respond to of 10655

I'm waiting for after labor day for the head traders to get back to Wall St. and I can get a feel for what they are thinking. Right now I am out of the market. You may want to check out TDFX. This is one stock that I closely follow due to its great under valuation. The stock has very good potential and someday it will make a ton of money for someone. But it is in a serious down trend. Since its options trade typically at implied vol of 90 to 120 you can decide if you want to go long and sell calls, or go short and sell puts. Just becareful; I have a feeling that many people on both sides of the trade will get burned after TDFX anounces their quarterly in October. Does anyone else care to comment on my option strategy? ST

To: Bald Man from Mars who wrote (31)	9/2/1998 6:10:00 PM
From: Michael Berkel	Read Replies (1) \| Respond to of 10655

Coke is going down! The Art of Investing is NOT paying 40 times earnings for a company that is hardly growing and which will most certainly be affected by the deterioration in the emerging markets. (Europe & USA are saturated markets. Coke is heavily relying on Asia, Japan, Russia and South America to expand & increase its numbers). Coke made $1.64 in 1997. If all goes well (which it won't) they will do $1.58 this year and - most unlikely - try to earn $1.70 in 1999. This is not a 40% growth stock folks, but that's what you have to pay for this Warren Buffet darling. So, we have a classic example here of an overvalued company which is rapidly losing Momentum. Investors are beginning to realize that they can get fair value from a lot of other companies elsewhere on WallStreet today, which are indeed substantially growing. The recent fall of COKE demonstrates: 1) That a highly recognized international brand does not provide shelter in times that markets collapse. Warning: A South America crisis is next on the agenda folks! 2) That the times that well-recognized consumer stocks like Coke and Gillette were considered "safe-havens" are over! Csco and Lu and Aol are much better value for money nowadays. My next target for Coke is $50. Bear with me! Happy Trading! Michael Berkel