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Microcap & Penny Stocks : Mortgage Bankers Holding Corp (MBHC) -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Jedrich who wrote (1033)	4/28/1999 3:23:00 AM
From: CIMA	Respond to of 1241

The Internet & Casino Stock Report April 28, 1999 [Unable to display image] Market Overview: The Dow moved to record highs while the Nasdaq slipped 49 points. After the bell America Online announced earnings of 11 cents per share, beating analyst estimates of 9 cents. The revenue and earnings growth were impressive, however the street seems somewhat disappointed in AOL's failure to announce a stock split. In after-hours trading AOL was relatively unchanged at $153 after climbing as high as $166. The current sector rotation between the cyclical bellwethers and the technology sector is enough to make anyone seasick. One thing I can tell you from the floor of the Chicago Board of Trade is that traders are beginning to add premium to oil, gold, silver, and other commodities. This represents their current feeling that the economy is somewhat overheated and their belief that inflation could emerge. There are two ways to look at this. The optimistic view is that adding value to hard assets narrows the divergence between techs and core industry, i.e., Goodyear (GT) , Boeing (BA), Deere (DE) , DuPont (DD). Undervalued stocks gain at the expense of techs. This improves the advance/decline line and shuts up the those doom and gloom talking heads. The pessimistic view is that higher prices in basic commodities begets higher interest rates. Corporations pay more to borrow, earnings plunge, and the stock market falls. The ideal situation is some sort of happy medium. It now appears that global economies remain on the mend. Our view is that the fundamentals of the US economy remain strong, interest rates remain low, and the trend remains UP. Stocks to Watch: E Digital Corporation (EDIG) gained 88% today to close at $1.50, now up over 1300% from our initial recommendation in January. The fact that everyone seems to believe this stock is heading higher makes me an instant contrarian. I advise readers to leave this one alone. A spike top and a pullback are likely. These small stocks can really sting. Be careful out there, greed kills! On Friday, April 16th we remarked, "Edify Corp (EDFY): Recent volume surge for this maker of online software. Stock should remain active and continue to move higher. 8 5/8 last." After a pullback to $7 the stock continues to move upward closing at $10 this afternoon on volume of 3.5 million shares. E.lottery.com (ELOT), we mentioned a short-term bottom at 5 5/8 yesterday. The stock responded well on excellent participation, up 39% today to 8 9/16. A challenge of the old highs at $12 is now likely. A word of caution: Do not purchase this stock into a weak Internet sector. The risks increase proportionally. Affinity Technology Group (AFFI), online mortgage software: One of our favorite picks into the upcoming E-Loan IPO, this stock remains in an accumulation zone between $2- $2 1/2. A test of the bottom at $2 is likely before another major price surge. The technical chart pattern is similar to that of Finet Holdings (FNHC) just 8 weeks ago. Our price target remains $6-$8 (3-4 weeks). The 3 year high is $24 1/4. This one has room to work on the upside. To be removed from our mailing list please respond to this email with "remove." Also, please visit our website at www.walzco.com/trdrjohn The information provided above is believed to be accurate. Earnings and revenues may be estimated for the purposes of evaluation and comparison. This letter is a general circulation publication. We do not give investment advice, nor do we at any time manage or direct the funds of any person or company other than our own. Positions contained in this report are the publisher's personal trades, and are not intended as trading advice for readers. This report is issued solely for informational purposes and content is not to be construed as being an offer to sell or a solicitation to buy any security. We do strongly recommend that readers contact their personal investment advisor or broker for advice pertaining to any investment questions they might have. The publisher is not a registered investment advisor, but rather a news editor and a stock trader for his own account.