MASTERING
THE TRADE
ORIGINAL, INTERACTIVE SEMINAR ON TRADING USING
TECHNICAL ANALYSIS 

 SEC FILINGS

CMGI (CMGI, 182.13)- The company reported a profit of $0.28 a share which included $55.9 million from the sale of stock in its internet venture portfolio.  Excluding the gains the company reported a wider than expected loss of $0.41 a share.  The shares dropped a point on Instinet.

DAY RUNNER (DAYR, 13.25)- The company warned that it is experiencing weak third quarter revenues due to "inventory tightening" by its customers.  The company, which earned $0.09 in last year's third quarter, expects to report a wider than expected loss of $0.35 to $0.40 a share for the current quarter, and states that the fiscal fourth quarter will also be "difficult".  It will be even more difficult for the shareholders of this personal organizer manufacturer today.

DOUBLECLICK (DCLK, 106.43)- The company will split its shares 2 for 1.  Stock split chasers drove the shares of the ad agency up by $4 a share on Instinet after the news broke and it will likely rise further when trading opens this morning.

MICROSOFT (MSFT, 161.43)- The company's shares fell 1 point on Instinet after it announced that 3rd quarter revenues would be $400 million below estimates due to a delay in shipping the next version of its Office suite.  The $400 million in revenues will be deferred into the fourth quarter and will increase 4th quarter earnings by 8 cents a share.  In yesterday's conference call, the company further stated that it will meet earnings estimates and it sees continued strong demand for personal computers. The shares should regain the ground they lost on Instinet yesterday after the Wall Street Journal reported today that the company is planning to announce a reorganization that will split the company into 4 major operating divisions.

NATIONAL SEMICONDUCTOR (NSM, 10.68)- The chip maker reported a sequential drop in revenues but had a lower than expected 3rd quarter loss of $0.16 a share, versus estimates of a loss of $0.20 a share.  The company then went on to warn that it expects to post a wider than expected loss of $0.16 a share in the 4th quarter.  Brian Halla, NSM's CEO, cited "competitive uncertainties in the personal computer markets" as the reason for the diminished 4th quarter expectations. It will be interesting to see whether the market accepts MSFT's outlook for the PC market or National Semi's version.

NORTH FACE (TNFI, 13)- North Face has the potential to be today's biggest percentage loser--if it opens for trading. The apparel maker stated Thursday morning that its auditors were "evaluating the accounting treatment of certain transactions recorded during the fourth quarter of 1997 and the first quarter of 1998. This evaluation is likely to result in the restatement of previously announced year ended December 31, 1997 and first quarter 1998 financial statements." The company's stock was halted all day Thursday after NASDAQ requested the company provide it with additional information concerning the accounting problems. Several class action lawsuits have been filed that claim the company and officers "falsely reported North Face's financial results and overstated its sales growth causing the Company's stock price to trade as high as $29."

ORACLE (ORCL, 36.88)- The software company beat 3rd quarter analyst estimates by $.01 a share and net income increased 36%.  Revenues rose 19% for the quarter but product revenue growth disappointed analysts: application software revenues increased by just 5% and database licensing sale were up just 10%, both below expectations.  Analysts fear the company could miss full year earnings estimates if the slower revenue growth continues.   The shares were beaten up on Instinet and fell  points.

PRODIGY COMMUNICATIONS (PRGY, 40.75)- The company reported a smaller loss than last year, as it lost $0.38 a share in the quarter against $2.14 last year.  The companies internet service revenues grew 172%.  The shares rose $2 1/2 in after hours trading.

SAFESKIN (SFSK, 15.25)- The disposable glove maker warned that it will miss first quarter estimates. The company expects to earn 1 cent a share compared to the current analyst estimate of $0.25 a share.  The company said that sales will be $28 million below expectations because of "higher than estimated distributor inventory levels and slower-than-anticipated ramp up of orders from new customer contracts."   Safeskin also expects gross margins to fall 4-6% for the year.  Safeskin shares will rival those of North Face in the race for the day's worst percentage loser.

AURORA FOODS (AOR, 13.63)- The company will buy the Chef's Choice meat brand from Sea Coast Foods.  Aurora expects the sales of the Chef's Choice brand to double to $100 million within 2 years.  AOR's 1999 profits will rise as a result of the deal.  Look for the stock to rise modestly as analysts adjust their estimates upward.

BRIGHTPOINT (CELL, 13.06)- The cellular products outsourcer warned that revenues and earnings will miss analysts estimates by a wide margin in both the first quarter and the entire year.   The company expects first quarter profits to drop to 0.  Analysts had been expected a 35% rise in earnings.  The company cited difficulties in its Asia-Pacific and Latin American divisions, and revenue shortfalls from its agreements with Iridium system operators.  The stock will be hit hard this morning.

BROKEN HILL PROPIETARY COMPANY (BHP, 15.88)- The company warned that earnings will be 20-25% below analyst estimates.

800-JR CIGAR (JRJR, 15.25)- The cigar retailer's 4th quarter earnings dropped from $0.37 to $0.15 a share.  Analysts had been expecting earnings to rise to 49 cents a share.   According to the company "downward price pressure in our industry and the delayed opening of our new Burlington super center impacted profits in the fourth quarter.'' .There will b downward price pressure on the stock today.

INFOSPACE.COM (INSP, 84.94)- The company filed to offer 2.8 million shares in a secondary offering.   The news follows a 20 plus point jump in the share price during Wednesday's trading.

INGRAM MICRO (IM, 18.63)- Ingram warned that its first quarter earnings will be $0.27-$0.30 a share, below the consensus estimate of $0.42.  The company will also cut 1,400 jobs in an effort to boost margins and will take a charge to cover the restructuring.  The company cited margin and pricing pressure in the U.S., Year 2000 concerns, and slowness in Asia, Europe, and Latin America as reasons for the shortfall.  The shares are down over 60% from their September highs, and will likely fall further today.

MORGAN PRODUCTS (MGN, 3.13)- The window and door distributor has agreed to be bought for $4 a share by Andersen Corporation.

DELL COMPUTER (DELL, 44.06)- CEO Michael Dell sold 2% of his shares, and the stock is down in Europe as a result.   If NASDAQ moves up today this news will be forgotten and the shares will move in line with the overall NASDAQ tech stock trend.

KOHL'S (KSS, 73.38)- The company beat estimates by 3 cents a share in its fourth quarter.   The stock has been trending higher, and will likely get a further boost by the news.  The shares are already pricey, and will get pricier with the news.

METRO NETWORKS (MTNT, 47.5)- The people who bring you the morning traffic report beat estimates by 5 cents a share on a 20% rise in revenues.  The company is currently trading at 32X 1999 estimates and at a price/sales ratio of 5.

Alpine Group (AGI, 10.75)- Alpine Group reported 3rd quarter earnings of $.07 a share, missing estimates by 53%.  The company cited slower January revenues at its Superior Telecom subsidiary and weakness in the steel industry for the shortfall.  On the plus side, revenues doubled to $440 million and the company sees an improved operating environment later this year.  The shares will get hit today but are attractive at current levels.   AGI currently has a price/sales ratio of 0.2.

Boca Research (BOCI, 3.75)- BOCI surprised on the upside with a 4th quarter gain of  $.02 a share.  The company then warned that first quarter revenues will be down sharply.   Avoid--in the struggling modem maker sector we prefer 3Com shares for their recovery potential.

CheckFree Holdings (CKFR, 35.25)- The company will take a charge to cover costs related to the acquisition of financial software company Mobius Group.

Digi International (DGII, 7)- Digi warned that lower than expected revenues will lead to a 2nd quarter loss.  Analysts were expecting profits of $0.14 a share.  The company will also take a restructuring charge to cover a planned reorganization.  The shares will come under pressure today, but they have already dropped from a 52-week high of 29.5.  The shares are now attractively valued, but it is still too early to buy.  DGII shares currently trade at book value with a price/sales ratio of 0.53.

Gadzooks (GADZ, 7.94)- The apparel retailer posted a wider than expected 4th quarter loss and disappointing sales.  The bad news has already been factored into the company's shares, which have dropped from a 52-week high of 29.88.  Stock was unchanged in Instinet trading.

Microsoft (MSFT, 159)- Rumored to be in talks to settle anti-trust suit.  The rumours could boost the tech sector today.

O'Sullivan Industries (OSU, 10.56)- The company will BEAT estimates by 30% due to stronger than expected sales.  Look for the shares to get a boost today.  We like the shares at current levels.  OSU is trading at book value with a price/sales ratio of 0.48 and a projected P/E ratio of 9.7.

Periphonics (PERI, 10.19)- The call processing equipment maker  warned that it will miss estimates by 40-45% due to order delays and lower than expected revenues.  The shares, which traded at 5 last September, will get hit today.

Remec (REMC, 18)- The wireless equipment maker beat estimates by 2 cents but revenues fell 14% and profits fell by 50% from the prior year.  Avoid.

Schulman (SHLM, 15.5)- The company warned that it will miss analyst's second quarter estimates of 33 cents a share due to weakness in plastics pricing.  Schulman also warned that conditions in the 3rd and 4th quarters would remain weak.  The company is cheap on a valuation basis, but it will get cheaper.  Wait.

Perot Systems (PER, 39.25)- Ross Perot's company beats estimates by 1 cent as sales increase 20%.

CompUSA (CPU, 8.13)- PC retailer issues earnings warning and its shares fall 7% in after hours trading.  The company cited lower same store sales for the short fall and expects to lose money over the next 2 quarters.  Looking at the lower than expected revenue growth that PC manufacturers and retailers have recently reported we see little reason to be excited by yesterday's Dell-IBM announcement.  We are eying CPU as a turnaround play later this year however.

Rawlings Sporting Goods (RAWL, 11.63)- The maker of baseball gloves and other sports equipment issued an earnings warning.  The company expects earnings to be 40% below analyst estimates and sales to be 7% below targets.  "Competitive marketing pressures" were one of the reasons given.  A falling stock price today will be one of the effects.

Harvey Entertainment (HRVY, 6.38)-Harvey's founder wants to buy the company for $7.50 a share.

Wal Mart Stores (WMT, 89.38)-The retailing giant announced a 2 for 1 stock split, a dividend hike, and a billion dollar share buy back--All on the same day, and all with the shares in nosebleed territory.  Look for the stock split chasers to drive these shares higher today.

Level One Communications (LEVL, 27.13)-Intel will buy the networking company for $2.2 billion. LEVL has already agreed to the deal and Intel will issue shares to pay for it. This deal should temporarily take some of the attention off of INTC's loss of market share to AMD.