Our Whisper Stock Section Success
This section last updated on April 7, 2001.....
Check out our Archived Back Issues Section for more specific details on all the below recommendations. Search for every time we wrote about your favorite stock simply by entering the stock symbol or company name!
In this business, financial newsletter advisors are only as good as their last trade! Most investors subscribe to Market Digest Online for the incredible picks we make in the Whisper Stock section. Prior to March 2000, MDO subscribers became spoiled with the average gains in this section ranging over 100%. It was not uncommon for subscribers to gain 200%, 300%, 400%, 500% on many of our recommendations. Since March 2000, the Bear market has taken its toll and our average gains are down substantially. However, for those who listened to Market Digest Online back in May of 2000, MDO advised its subscribers to go short most of the highfliers such as Yahoo, eBay, Cisco Systems, Qualcomm, Amazon.com, Microstrategy, Priecline.com and doznes of others.
* 05/11/00, recommended shorting Yahoo (YHOO) at $125.31 per share. MDO has also recommended several different put options as Yahoo fell out of bed. Our put options have all been triple digit gainers and Yahoo is today priced at $14.81 per share.
* 05/11/00, recommended shorting eBay (EBAY) at $58 7/8. eBay recently traded at $35 1/2 per share.
* 05/11/00, recommended shorting Cisco Systems (CSCO) at $60 1/4. MDO became particularly aggressive with this short position in December, 2000 when we recommended the Cisco Systems February 27.5 put options. These options went out as triple digit gainers. We then recommended the CSCO 17.5 April put options which also went out as triple digit gainers. And we also recommended the Cisco May 15 puts which we anticipate will also go out as triple digit gainers.
* 05/11/00, recommended shorting Amazon.com (AMZN) at $54 7/8. Today Amazon.com trades at $8.37 per share and MDO is predicting that AMZN is a candidate to eventually go belly up.
* 04/14/00, recommended shorting Priceline. com (PCLN) at $62 1/8. Today Priceline.com is priced at $2.69 per share.
* 04/14/00, recommended shorting MP3.Com (MPPP) at $13. Today MP3.Com is priced at $1.81 per share
At this point we urge you to subscribe to Market Digest Online or at the very least try our 10 day free trial. Check out our "Newsletter Archives" section to check for yourself the fact that our newsletter was one of a very few who started going short this before it was mauled by the Bear.
03/30/01, recommended shorting ARIBA (ARBA) at $7 31/32 even though the stock was down from the $100 level. Here's exactly what we told our subscribers......... Can it go lower? You bet it can! Ariba provides business-to-business infrastructure - software and the like - which lately is a gaunt business model. Especially after Dell Computer shut down its Ariba powered online marketplace in February because it drew little interest. For 2000, Ariba posted a net loss of $800 million on revenue of $280 million. Shares are down from a 52-week high of $183. Even though this stock is currently priced in single digits, MDO believes it can trade lower. Our near-term price objective is $5 Why you ask? The company practically pays customers to use its systems, issuing millions of stock warrants as come-ons. Bye-bye to that gimmick. With the stock tumbling, the warrants have less appeal than in the Web's Wall Street heyday. Plus, Ariba is having trouble collecting bills. In February it disclosed $27 million in doubtful accounts receivable, a huge 18% of the $120 million now due. Short the stock with a near-term price objective of $3-$5 per share. Today, Ariba trades at $4 for another huge gainer to MDO subscribers.
Even though we've been in the grips of a Bear Market, MDO has also picked the winners on the long side....penny stocks, mid-caps or large-caps, it really doesn't matter. We try to cover all the bases.....
* 08/10/99, recommended Ultra Petroleum (UPL) under the $1.00 level. Ultra Petroleum now trades at $4.80 per share
* 04/24/00, recommended Green Mountain Coffee (GMCR) @ $18 1/2. MDO advised subscribers on 12/18/2000 to take profits at $51 1/4 for a 177% gain.
* 05/16/00, recommended shares of Shufflemaster (SHFL) @ a split adjusted $9 per share. Today Shufflemaster trades at $21.63.
Barrett Resources (BRR) is a stock that MDO has recommended since the mid-1990's. Our coverage of Barrett started when the stock was priced in the teens. Since our coverage, the stock has traded as high as the $60's and in late December 2000, MDO successfully called the buyout of Barrett Rersoruces. BRR is one of several energy issues which MDO has recommended for nice gains.
* 10/25/00, recommended Amsurg Corp. (AMSGA) @ $12 15/16 per share. Today, AMSGA trades at $19 3/4.
Back to the short side.......
PROCTER & GAMBLE (PG)...... On March 1, 2001 with PG priced at $70.50, MDO recommended shorting the stock and buying put options. Here's exactly what we said........ Bad news is all around us and Procter & Gamble has been no exception. On Monday of this week, P&G reduced its earnings forecast for the second half of its fiscal year, blaming the impact of the financial crisis in Turkey. About this time last year, there was another earnings warning that caused the stock to drop from the high $80's to the mid-$50's. Last week the company announced that it would combine its juice and snack products division in a venture with Coca-Cola. The venture will be equally owned and the new division hopes to harness Coke's giant distribution system to provide P&G's lagging Pringles chips with more sales outlets. Many analysts have called the venture a "marriage based weakness" and in particular questioned the wisdom of joining Coke's growing juice business with P&G's ailing Sunny Delight drink brand and Pringles. MDO has received a tip that the venture has not set well with P&G employees in the juice division. There will be no profit sharing in the new division, so P&G employees in the juice division will have to forfeit profit sharing if they stay with the company. Bottom line... there's much turmoil within the company that Wall Street is probably not aware of. In addition, we're hearing that P&G may either restructure or layoff as many as 18,000 employees. Bottom line.....here's another big name company whose stock is probably headed lower. On the chart, a close of $66 will be a double bottom sell signal. Short the stock or buy the April 75 puts (PGPO), which closed yesterday at $6.10. Today, PG is priced at $61.68 per share and our April 75 puts are priced at $13.90 for another triple digit gainer.
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