Prime Stock Advisory Letter for January 12th, 1999

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Today's Comments:  WOW!..........and I thought Yahoo! 'YHOO' was overvalued when it was trading in the $70 dollar range late this summer.  I never thought I would see it finish the day $71+ higher,  let alone the $99+ intra day gain it saw.  From my nightly survey of the charts of the market indices and different companies it appeared that the only stocks that moved were ones that Internet related.  It is important to remember that there is a real world outside of Cyberspace.  But maybe we are all trading in virtual reality if not living in it.  I  remember that one day last week I mention to one of the trader's who sits near me that I had read an article talking about how the Chinese had just admidtted their economy was starting to slow down and they might devalued their currency.  To which my friend replied "So,  I do not see any 'China.com' trading on the stock market".  I guess his comments just about sum up the general market perception at this point.  Sooner or later profits will matter particularly in when compared to market capitalization.   Until then there will be many excellant trading opportunities.  Currently one of the major focusses this week is on the upcoming Marketwatch.com IPO.  The other has been all the talk of "Day Traders" moving the market around.  I'll get into my thought on this in a later edition of the newsletter.  Today I am looking at a company that should see a profitable increase in its business from the development of the Internet.  The Bottom Line:  The market should move higher.

Company:  PC Quote, Inc.      Symbol: 'PQT'      Closing Price: $3.25/share.
YH: $5.00      YL: $0.625      EPS: ($0.59)      P/E: N/A       Forecasted EPS: N/A
Dividend: N/A        Yield: N/A     Ex Dividend: N/A
Price Targets:  $4.375 & then $7.75        Downside Stop:  $1.875
Options Recommendation: Options Pick:  None Available.

Company Description: This company provides real time stock quotes and financial information to investment professionals and the investing public.

Recent News:  12/04  DoubleClick gets web ad Tech Contract for PC Quote

Our Analysis: The shares of 'PQT' gapped higher on the open of trading yesterday.  In the process they finished sharply higher on heavier than normal trading volume.  They should continue to move higher and test $4.375/share,  a point of upside resistance established in late April of last year.  If they close above that level then they will have completed a cup pattern with a measured move to $7.75/share.  While this is the smallest of the quote services I have covered,  its industry grouping is definately seeing increased attention from the investing public.  In addition to this due to the fact that it is the smallest it may also offer the greatest potential for upside appreciation.  I do not currently own any shares in 'PQT' and I do not currently have any distribution agreements with them.