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Strategies & Market Trends : Mr. Pink's Picks: selected event-driven value investments -- Ignore unavailable to you. Want to Upgrade?

To: Pancho Villa who wrote (4505)	10/30/1998 12:40:00 PM
From: chester lee	Read Replies (3) \| Respond to of 18998

<<Junk like PVN will eventually trade much lower.>> Oh how I hope that is true. I'm roughly 23 points under water, but am hanging tight. PVN should not be compared to the likes of CCSI, OCOM (which hit 5 this morning) POSS, ENML. CCSI, OCOM, POSS and ENML are what I would consider "junk" destined to trade below $5. These companies are not profitable so they just burn cash. That can't go on forever. I attribute their run up to small investors mis-understanding the fundamentals and buying them thinking they are bottom fishing. PVN is a different story. PVN is profitable, but its a pig with lofty valuations. I say it's worth 2 to 3 times book, and will trade there when the markets become more neutral. Liquidity and an access to cheap money seems to make the big boys more conservative in their selection. The feds may cut the rates again in Nov, but then again they may not. Overtime, stocks will trade to their fundamentals. chester