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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: Kmartin who wrote (9439)	1/13/1999 8:49:00 AM
From: Herm	Read Replies (2) \| Respond to of 14162

Howdy Ken! Welcome to the forum. SDTI has a nice 36.91% growth rates and a P/E which is getting pretty rich at this point. The next earnings release is due out soon on JAN. 26, 1999. So, the heat is on and the price should continue to creep up there to around $30. Most of the smart money will start to pull out by the earnings date. They may short against the box to lock in the profits. That means a pull back for the stock since it has made a 52-week high. iqc.com NASDAQ: (SDTI : $28 7/16) $994 million Market Cap at January 12, 1999 Trades at a 23% Premium PE Multiple of 55.8 X, vs. the 45.2 X average multiple at which the Software & Services SubIndustry. Keep an eye on the SDTI Feb. 25s @ 6 and the April 25s @ 7 3/8s for possible CCs when it hits $30. Of course, the premies will be higher then. It would make a nice cushion to rack in those large CC premies. Very nice gains in this stock.