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Technology Stocks : CDWC -- Ignore unavailable to you. Want to Upgrade?

To: yard_man who wrote (70)	3/20/1999 4:40:00 PM
From: Albert Mou	Read Replies (1) \| Respond to of 189

no wonder the stock hasn't dropped very much since the middle of Feb. Everyone saw the same thing, Traffic congestion! . CDWC had a great 3rd quarter, but a lousy 4th quarter. Lousy in term of a quarter when everyone was doing great from NSIT, MWHS to PCCC, yet CDWC only made marginal improvement from 3rd quarter. Although Price/sale ratio on CDWC had been relatively high in comparison with its peers, there is a reason to it - CDWC always maintained a very low selling and administration expense, 6.5% compared against peers' 8.6%. So, CDWC's Profit from Operation is 6.1% vs. peers' 3.44%. It leaves CDWC lots of flexible muscle. To discover why they have such a low S&A and whether they can maintain it is the crucial factor to the shorters'success, IMHO. Disclaimer- I am a shorter, but just discover this reason as a reason not to short too DEEP. My highest short was $120.