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Technology Stocks : Sportsline (SPLN) -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (724)	5/8/1999 4:40:00 AM
From: B. A. Marlow	Read Replies (1) \| Respond to of 858

Easy Money... As many of us know, SPLN has traded down to levels not seen since January. A portion of the weakness is due to the recent Net "correction" (just about exhausted?), but as much as half of the nearly 50 percent drop in SPLN from its March peak is inexplicable. After all, SPLN wasn't truly "overpriced." SPLN is a rapidly-growing, well-managed business with a fabulous brand name and a global opportunity. "Parent" CBS, arguably a "value stock" with an aggressive Net strategy (of which SPLN is a trophy), has recently made new highs. The Street loves CBS' Net initiatives. So why the extraordinary weakness in SPLN? Baffling. Pundits love to say how "efficient" the markets are. This may be true in the long run ("in which," as one economist said, "we are all dead"), but in the short run, markets make mistakes. The oversold performance of SPLN is, to be sure, a mistake. SPLN has done everything right. One can profit from the market's temporary miscalculation in three ways: take more (or better yet, double up), buy calls or just ride it out. Remember, analysts have recently called for price targets of as much as $85. (Two strong sell-side bulls are BBRS and PWJ.) What's more, at current levels, it's hard to envision any downside. Market makers seek volume, which is why they've moved down the bid. Along the way, they've covered their shorts, taken out the weak hands and built up plenty of inventory. Why let the MMs gouge you later? Take it now. When the Net sell-off is done, SPLN will be back with a vengeance. BAM P.S. Long CBS, SPLN. clearstation.com