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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: Herm who wrote (8730)	10/5/1998 5:45:00 PM
From: Herm	Read Replies (2) \| Respond to of 14162

W.I.N.S. BEAR TRAP ALERT FOLLOW-UPs! The bear traps (shorting stocks) mentioned just last week took the dump today! I believe the weekend edition of Barron's which was bearish on gold pushed the panic buttons. I'm kind of glad I'm tuned in to the same opportunities. I guess bear hunters think alike and look for easy targets. AU dropped like a rock today with a vanishing -$2.25 <7.7%> points in a blink of an eye! Ohhhhhhh! Somebody is hurting today! AU still overpriced! Watch the BB and RSI folk! BTGC gave back what it gained from the hype last week! I really love BTGC since it has follows the W.I.N.S. trading pattern the majority of the time. Bounces from upper BB to lower BB and the RSI usually confirms. Once BTGC makes the last part of the double bottom watch out! It will be upward spurts heaven! BTGC is underpriced! BSX still following like a rock. I recall a lurker saying the upgrades would keep BSX alive! Yeah right! They are the ones that stick it to you the next day! From $85 to $50 in a month! Wow! That really hurts! The shorts are making a fortune on BSX! Easy money! Down -1 1/2 <-2.9%> and still no bottom in sight. NEM is my favorate in the gold area to short right now! Dropped -1 3/8s <-4.8%> today. More to come! NEM trades LEAPs and has plenty of open interest in the options. Nice PUTs volume today! PAYX what can I say? TIMBER! Down another -15/16s <-2.1%> and may be ready to rebound. Keep an eye on the BB and RSI! TNSI is a bullet proof to just about everything so far! I may have to to eat humble pie on this tough stock. I have no idea why people are willing to over pay for this stock. Virgil thinks it will drop also. He should take TNSI with him on the sub! DIVE, DIVE! FON still going up and when it falls it will be a big bear splash! Way overpriced! ============================================================== Here are the original reviews on the above stocks! ============================================================== AU There is no shortage of gold in the world. In fact, bring your own truck to Mother Russia and she will load you up! Not to mention the gold stored away in the Swiss banks from the Holocaust victims. Why any investor would pay a premium of 85.7 P/E for a 3.9% growth rate I will never understand..... The whole industry is only a 17.3 P/E. This is a real dog and a half! NYSE: (AU : $29 1/8) $1,113 million Market Cap at October 1, 1998 Employs 50,000. Trades at a Premium PE Multiple of 85.7 X, vs. the 17.3 X average multiple at which the Gold & Precious Metals SubIndustry is priced. Consensus Future 5-yr Growth Rate: 3.9% askresearch.com. RSI is very high and the upper BB has been tagged. AU does not trade enough options contracts so consider shorting the stock itself. I believe AU made a new 52-week high of 29 1/4 today! TIMBER real soon! NEM NEM I really like as a bear trap. NEM investors are high on drugs to be paying a premium of 48.8 P/E for only a 7.5% growth rate when the whole industry is at a 17.4 P/E. Now hear this!!!!! NEM trades LEAPs and there are TONS of options traded on this sucker. Check out the 2001 LEAPs for the 10 strike price @ 17. You can enter into a spread by picking up the 10 JAN01s and CCing the DEC. 27.5s * 3 1/2. That lowers your cost $10 strike + 17.5 premie = $27.5 - $3.5 = $24 cost. That's a 20% no brainer! Now, if you follow W.I.N.S. you could buy the LEAP now and wait to sell a in the money CC and really grab some premies. Buy PUTs with the premies and milk NEM sideways! :-) NYSE: (NEM : $26 3/8) $4,127 million Market Cap at October 1, 1998 Trades at a Premium PE Multiple of 48.8 X, vs. the 17.4 X average multiple at which the Gold & Precious Metals SubIndustry is priced. Consensus Future 5-yr Growth Rate: 7.5% askresearch.com. FON FON is Sprint which is NOT a gold stock. But, the only sprint I see is an overpriced stock selling at a premium 41.9 P/E with a growth rate of 18.72% when the whole industry is at 19.4 P/E. FON does pay a div and Record Date: 09-SEP-98 Pay Date: 30-SEP-98. Hummm? Just passed! FON RSI is limp but the price continues to climb. Up today and ready to tag that upper BB and TIMBER! Just my opinion of course! NYSE: (FON : $74 1/2) (FONp : $225) (FONpA : $240) $32,244 million Market Cap at October 1, 1998 Ranks 76th in the Fortune 500 on Revenue & 70th on Profit. Employs 48,000. Trades at a Premium PE Multiple of 41.9 X, vs. the 19.4 X average multiple at which the Telephone SubIndustry is priced. Consensus Future 5-yr Growth Rate: 18.72% askresearch.com. Finally, you can tell when the CEOs are cashing in and leaving the crumbs for the investors! FON really is showing their true colors by the insider trading! Now, who is going to be the last one out of the exit door? biz.yahoo.com That's it! Wishing you all the best of "good buys and W.I.N.S!"