NETSCAPE: The Virtual Tulip


Well as we stated in our 1997 market report, after the Jupiter-Uranus conjunction this February, the skyhigh multiples of most tech stocks will begin to move earthward. Believe even though Netscape is a fine company, it is highly likely it will see a 50% price correction in 1997 AND I DON'T MEAN BY A STOCK SPLIT.

We believe Netscape shareholders may be SHOCKED to face a realistic pricing of their company this year. There was enough Saturn (code word: reality) this first Qtr to pluck this virtual tulip. BTW, if you value Netscape as a $1000 stock.... maybe so, but then Gold will be $650-$1000 and I can sleep at night.)

However, this points to the necessity of using fundamentals AND technicals with Astrology. While Netscape's slide could have begun two weeks earlier from a purely astrological viewpoint, it took an earnings report, (1 Feb. ) followed by the ability of insiders to Sell (5 Feb.), a stock split (7 Feb.) to begin its move earthbound and below its 1996 open of 139 (split adjusted 69 1/2). Now we come to the defining moment -- Netscape options on 12 Feb. on the AMEX - this is history for the reader but the future for this writer. The only factor I foresee that in my opinion can keep NSCP afloat is too much put buying, which as we all know, makes it profitable to sell puts and buy the stock. However, surprisingly, I do not foresee much influence/effect on the 12 Feb. horoscope chart for Netscape--i.e. there is NOT a great amount of contact between the two charts.

Regardless, we believe our 1996 Mantra, Buy IHI/Sell NSCP will reap continuous profit.

1996 Mantra Scorecard:

1/1 SPX 615

2/09 656

NSCP 139 132 (split adjusted 66)

IHI 1.45 2.20


Nothing seems to point to the lofty valuation of the US stock market than the introduction of the Netscape IPO. We will not comment on the lucky owners of stock who made more than 150% on August 9 when the stock soared to nearly 75. We will comment on those that bought and continue to buy at very, very rich prices.

We correctly foresaw problems developing for the company in a little over a month. You may remember that a flaw was found in the security of the program causing a serious drop in the stock price. We thought incorrectly that was enough to bring investors to reality. Apparently not. It quickly recovered. However, we wish to put on record the following:

WARNING: The price of this stock WILL be brought down to earth in the last 2/3 of January. However, it is possible it may do quite well in December. But this will be a great shorting opportunity - a true disaster for buyers. Stay tuned for more details.

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