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Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: melinda abplanalp who wrote (3440)	2/15/1999 3:48:00 PM
From: Rande Is	Read Replies (2) \| Respond to of 57584

Melinda. . .any company that is considered "the At Home of" wherever is probably a good long-term bet, IMO . . .provided you are in low enough. . . . With PCNTF, it is supposedly "bringing the internet to Asia." This is an area where earnings are way off inthe future, so financials hardly come into play. . .that is why I call such companies penny stocks. So in considering a penny stock, what is important? Well first, reputation of those involved. . . .second is the number of shares. With affiliated "parent" companies and various ADRs, it may be tough to calculate how far a single dollar of earnings [should there ever be one] will stretch. You are in familiar company going long on PCNTF. Many of those that shorted PRFM announced their intention of going long on PCNTF on opening day. Considering how the stock has turned slowly to the south since, it makes me wonder about the short interest. Don't everybody write me PMs about IPOs not being shorted in first 30 days, because we have already discussed here how that is B.S. Now, what is left in placing a valuation on PCNTF is projected revenues and how those will translate into earnings. I don't know what the growth rate being projected is, but again whatever it is needs to be weighed against the confidence that the company is telling the truth. . .and when it comes to foreign companies selling stocks in America, it is far more difficult to get an accurate accounting picture. . . so much is left to chance. UPCOY is virtually in the same position, and with the same factors bearing on its viability. One rule I have with penny stocks, is that, if the assets or revenue base cannot be easily verified, as in the case of foreign companies, then I generally stay away. Lots of bucks were spent on the PR for the IPO, so it will be hard to find any info about the company that is unbiased. The story of their customer service is fine, but it is far easier to get customers connected than it was 20 years ago, when I spent many days troubleshooting connections. . .when connecting to online services was still a mystery. . . with dip switches and various modem settings. . . on IBMs, Apples and Commodore P.C.s and A.T. and T. terminals. By contrast, cable modems generally have NO settings other than those set by the factory.. . and connection is nearly guaranteed. Rande Is