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

To: pressboxjr who wrote (1043)	5/4/1999 1:12:00 AM
From: John Walz	Read Replies (3) \| Respond to of 1241

The Internet & Casino Stock Report May 4, 1999 Market Overview: The Dow surged end-of-day to close over 11,000 for the first time in history. Sector rotation continues with money diverted from drugs and tech and into the cyclicals. Among the beneficiaries were oil, chemicals, and paper. Real Investment Trusts (REITS) were also strong after Warren Buffet trumpeted the group on CNBC earlier this morning. Financial stocks finished strong in anticipation of tomorrow's IPO of the venerable investment bank, Goldman Sachs. Among the weakest participants were the Internets. The Street.com's DOT index of Internet plays is now off 23% from its April 13th highs. At some point readers may chose to diversify their holdings. Maintaining a 100% technology portfolio consisting of Amazon (AMZN), Yahoo (YHOO), and America Online (AOL) is undoubtedly ill-advised considering current market conditions. In general, a broadening of the market should be viewed as healthy long term. For our part we have partially hedged our tech stocks and other holdings with long positions in the futures market, particularly those which are at least partially interest rate sensitive (gold, silver, etc.) In the near term we believe traders will continue to place pressure on long term yields. Diversification into cyclicals as well as Russell 2000 small caps should continue. Stocks to Watch: Mortgage Brokers Holding Corp (MBHC) announced today a partnership agreement with Internet information website <Boomers.com> MBHC will provide to Boomers.com a sole source solution for financial services and products. Kevin P. Maloney, President of MBHC, remarked "The potential revenues and earnings from this joint venture are staggering within the next 18-24 months." Currently trading at 0.48 with a book value of $1.43 we maintain our modest upside target of $1.50 (3-4 weeks). Affinity Technology Group (AFFI): Internet mortgage software provider continues to retreat from its April 14th high of 4 15/32. We again averaged down this afternoon @ 1 3/4, giving us a current cost basis of $2.64 At this juncture we are playing a favorite game of the market maker, that is; identify a volatile stock in an uptrend based on significant volume surges, accumulate on weakness, scale out on strength. The upcoming E-Loan IPO, recent activity in Finet Holdings (FNHC), and comments regarding the Internet mortgage group by Deutsche Bank, Piper Jaffray, and Morgan Stanley's Mary Meeker should underpin this stock. We called the 725% gain in FNHC and we believe this stock is little different. Our target remains $6-$8, 3-4 weeks. Don't forget to post your personal picks at our website: 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.