Date: Sun, 03 Jan 99 10:16:14 EST From: ste32@web-city.co.jp To: juli90@worldnet.att.net Subject: StockNetworking News No. 11 Message-ID: <359DFE77.4AC9@erols.com>
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StockNetworking News No. 11 (SNN)
HAPPY NEW YEAR AND PROFITABLE INVESTING TO ALL OUR
SUBSCRIBERS IN 1999.
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Table of Contents - SNN 11
1998 in review
A big winner - NuOncology Labs Inc.
Internet stocks for 1999
REVIEW
Like everyone in the "stock picking" business, SNN had some
winners and losers in 1998.
In general, our best calls seemed to be on market direction - SNN
remained confident that the market would continue to trend higher
over the course of the full year and saw each market correction and
pull back as a buying opportunity.
The worst period were in August/September when the market gave
up almost all of the gains it had achieved year to date and Mr.
Clinton's troubles began to surface. The strong US dollar gave
Mr. Greeenspan and the FED plenty of room to maneuver with
interest rates and we saw the DJII rebound from the 8000 and
close for the year just under 9200.
The NASDAQ did much better moving from the low 1400's in
October, to close at a phenomenal 2192 on December 31, 1999.
SNN believes that the market will continue in a similar pattern for
the next 3 to 4 months, at least. There is so much momentum in
the general US market and no major changes apparent in the low
interest rate (and perhaps lower rates ahead), continued low
inflation, and moderate GDP growth scenario that we have enjoyed
over the past few years.
SNN continues to believe that there will be a move into the smaller
cap markets in the near future. This move will almost assuredly be
lead by the individual investor as the funds, with the huge sums
they have to invest, have trouble buying these stocks without
dramatically affecting their price.
The other major factor for investors to look for in early 1999, will be
a chorus of negative commentary on Internet stocks. Some
criticisms will be justified, but if you look at the short positions in
some of these stocks it is apparent that there is some very
sophisticated, and SNN expects, institutional and hedge fund
money that is short. Obviously as these positions now stand, the
short sellers are out a lot of money. They will do everything in
their power to talk down these stocks in 1999 - one of the more
ludicrous "negative" scenarios that was being touted on CNBC
and in other media last week was comparing the Internet stocks
to the Bowling stocks of the 1960s.
SNN believes that the paradigm shift that the Internet has, and will,
inflict on the world economy is only beginning to be understood -
comparing this to "Bowling"???? forget about it!!!.
WINNERS AND LOSERS
SNN had 4 stocks on which they prepared profiles in 1998 -
FutureLink (Symbol FLNK), NuOnclogy Labs (Symbol NLAB),
US Digital (Symbol USDI), and COMGEN (Symbol CGEE), all
trade on the OTC BB.
In our opinion the jury is still out on US Digital and COMGEN and
we will update these situations early in 1999.
By far our most disappointing company profiled was FutureLink.
SNN still believes this company has tremendous potential. Just last
week IBM announced that they had sold 14,000 terminals to 2
customers in a networked configuration similar to the installations
that FutureLink provides. This confirms to SNN that FLNKs business
model is very viable.
>From our research, we have discovered one major problem that has
been keeping the stock under pressure. It turns out that the $2.0
debenture they did last year, was one of these "deals" that converts
out at 78% of market. SNN believes that this has been what has
been creating the constant selling pressure in the market as the
debenture holders cannot lose by converting and selling.
Perhaps this selling has been completed and their may be a New
Year bounce in these shares - look for lower volume and/or price
spikes upward, as an indication that the pressure is off.
SNN has also been told that the company plans to do a
consolidation of their shares in early 1999 - perhaps later this
month or in February - that will result in the stock trading in the
$8-$10 range. (They got shareholder approval to do a rollback of
up to 30 times). The size of the rollback will be determined by the
price of the stock the day they announce the consolidation - if it is
trading at $1.00 they will only do an 8-10 times consolidation - if it
is trading at 50 cents it will be consolidated 16 to 20 times.
In addition, they plan to complete financing, obtain a
NASDAQ listing, and announce a significant acquisition. Perhaps
this will be enough to get this company moving!!!!
As for our other major profile NuOncology Labs Inc., 1998 was an
excellent year.
SNN profiled the company the day it came to trade at $5.46 and it
closed the year at $12.25 for a 125% gain for 6 months.
As mentioned in SNN #10, NLAB management completed a major
"road show" in Europe the week before Christmas and we would
expect some news and major market interest to develop from this
area.
The company has confirmed that Arglabin is a Farnesyl Transferase
Inhibitor (FTI) <see the NLAB news release of Dec. 17 at:
http://biz.yahoo.com/n/n/nlab.html>; and a paper on both the method
of action of Arglabin and on the progress of the human clinical trials
in Kazakstan should be released soon.
The company's share price is in uncharted territory but it would not
surprise SNN to see the stock trading at $15.00 in the near future.
Longer term it could go much higher considering the valuations that the
stock market gives for successful cancer therapies.
NuOncology Labs Inc.(Symbol NLAB on OTC BB), has the potential to
be a huge winner in 1999.
THE INTERNET
SNN is presently researching 2 Internet related stocks.
The first is a fast growing Internet Service Provider with a very
successful business model, the second is an e-commerce "portal"
with a very large but underdeveloped niche market.
We expect to be profiling one of these new listings within the next
2 weeks, hopefully in conjunction with the date they begin to trade
as public entities, so keep an eye out for SNN's next edition.
DEPARTMENTS:
A. Stock Quotes
B. Your Comments
C. Disclaimer
D. Privacy Statement
A. STOCK QUOTES
For stock quotes on any company please go to:
http://quote.yahoo.com/
B. YOUR COMMENTS ARE ALWAYS WELCOME
If you wish to make a suggestion or comment about SNN or its
content please forward it to:
comments@eastmail.com
C. DISCLAIMER
By being a subscriber of SNN you are acknowledging you have fully
read and understand our disclaimer at:
http://206.132.163.167/a4663/disclaimer.html
D. PRIVACY STATEMENT
SNN respects your privacy and will NEVER release your e-mail
address to a third party for any reason.
SNN No. 11 copyright 1999 SNN
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