Prime Stock Advisory Letter for August 31, 1998


			Prime Stock Advisory Letter for January 27th, 1999 Position Statement: In our Prime Recommendation Letter we attempt to identify the recommendation with the highest probability of moving higher. We recommend that stop orders be placed at the time of purchase, and once the position has moved profitable we recommend a stop be placed a minimum of 3/8th above the purchase price and moved higher as the position moves higher. Today's Comments: The overall market moved sharply higher yesterday. There was solid across the board strength that affected most of the indices I track, except for the commodity based indices which moved lower. The technical picture of the market has improved with yesterday's move higher. There is a downward trendline that the Dow Jones Industrial Average 'INDU' is up against. A move higher again today would break that trend line and allow the Dow Jones Industrial Average to test its closing high of 9,643.32 set on January 8th of this year. The strength in the NASDAQ 100 Index 'NDX' leads me to believe that we should move higher and break this downward trendline on the Dow Jones Industrial Average. The Bottom Line: The market should move higher. Recommendation Company: Cisco Systems, Symbol: 'CSCO' Closing Price: $107.25/share. YH: $109.94 YL: $37.19 EPS: (0.94) P/E: 113.9 Forecasted EPS: 1.82 Dividend: N/A Yield: N/A Ex Dividend: N/A Price Targets: $117+ Downside Stop: $105.875 Options Recommendation: February 110 Calls, Symbol 'CYQBB' @ $4.75/contract. Company Description: This company is a major producer of networking products. Recent News: 1/26 Sprint to use Cisco products in high speed service. 1/21 Cisco opens R&D plant in Scotland Our Analysis: 'CSCO' is a component of the Amex Inter@ctive Index 'IIX', the CBOE Internet Index 'INX', the Morgan Stanley High Tech Index 'MSH', and the CBOE Technology Index 'TXX'. I have rated all of these indices as moving higher from their current levels. The shares of 'CSCO' set a new closing high yesterday. In the process they completed a cup pattern with a measured move to our stated price target of $117/share. This company supplies many of the hardware components used in the Internet. The tremendous growth of the Internet is fueling demand for this company's products. Yesterday the company announced a major contract to supply Sprint with networking products. The Sterling Investment series of newsletters is produced by Sterling Investment Services, Inc. If you would like to receive a chart on any index or stock mentioned in this report please contact us at the below mentioned numbers. We also offer custom research reports on any stock investment that you may desire information on. To receive further information on these services please visit our web page at: www.sterlinginvestments.com If you would like to contact us our # is 800-275-6901, fax # (404)-816-8830 Email address is: enelson@sterlinginvestments.com Sterling Investment Services may hold positions in the securities recommended or may be providing consulting services to the companies mentioned within this report. FREE Subscription to the Small Cap Advisory Letter Previous Prime Stock Advisory Letters *Sterling Investment Services Home Page* For those of you who would like to contact me during the day I am also available on line through the AOL Instant Messenger service (It is available through AOL and as a Netscape Plug-In.). My screen name is "ESN Fin". I welcome and encourage you to use this method of communication. I look forward to your use of the AOL Instant Messenger Service. This is a FREE SERVICE. You do not need to be an AOL Subscriber to use this service. A free download of this service is available at www.newaol.com/aim email: enelson@sterlinginvestments.com Copyright 1992-99 Sterling Investment Services, Inc. PO Box 191767, Atlanta, GA. 31119-1767 Fax 404-816-8830 404-816-8240 Home \| EMail Service \| Fax Service