Over the holidays, we revisited Mudville, home of Ernest Thayer’s famous poem Casey At The Bat, only to find the town had changed its name to Techtown.
“Who wants to know?” Martini the bartender growled when we inquired as to how Mudville’s disgraced hero was wintering.
Nortel, a monster technology company that carries an entire stock exchange on its back, was the talk of Techtown, having lost half its market cap. And the buzz at Martini’s was over a brash new cleanup hitter named John Roth, Nortel’s boss.
The locals just called him “Casey.”
Now the great game was the stock market. Here’s the latest scoop from Mudville, er, Techtown.
CASEY AT THE BAT (Revised 2001 edition)
The outlook wasn’t brilliant for the Techtown nine this day;
The bear market was trouncing the bulls in the large-cap market play.
And then, when Microsoft’s Gates died at first, and Cell-Loc’s Fattouche did the same,
A sickly silence fell upon the patrons of the game.
A straggling few got up to go in deep despair. The rest
Clung to that hope which springs eternal in the human breast;
They thought, ‘if only “Casey” Roth could get a whack at that,
We’d put up margin money now, with Casey at the bat.’
Then from five thousand throats and more there rose a lusty yell;
It rumbled through the Toronto Stock Exchange at opening bell;
The market analysts shouted, “Them bears will soon be on the mat!”
For Casey, Mighty Casey, was advancing to the bat.
There was ease in Casey’s manner as he stepped into his place;
There was pride in Casey’s bearing and a smile on Casey’s face.
And when, responding to the cheers, Casey lightly doffed his hat,
No stranger in the crowd could doubt ’twas Casey at the bat.
And now the leather-covered sphere came hurtling through the air,
And Casey stood a-watching it in haughty grandeur there.
Close by the sturdy CEO the ball unheeded sped;
“That ain’t my style,” said Casey. “High interest rates, strike one,” the umpire said.
With a smile of bullish radiance, great Casey’s visage shone;
He stilled the rising tumult, on ROB-TV he bade the game go on;
He signalled to the market maker, and once more the spheroid flew;
But Casey still ignored it, and the umpire cried, “Profit warnings, strike two!”
The sneer is gone from Casey’s lip, his teeth are clenched in hate,
He pounds with cruel violence his bat upon the plate;
And now the market maker holds the ball, and now he lets it go,
And now the maddened masses are silenced awaiting Casey’s blow.
Oh, somewhere in the cheat seats high up in the stands,
Brokers, analysts and traders feverishly wring their hands,
But there is joy in Techtown — mighty Casey has fashioned a hit,
“There are no more homers in this game!” scowled a humbled Casey, hugging the bag at first. “So I’ll gladly take the bunt single for a hit.”
PRO'S THREE STARS
Josef Schacter, president of Calgary-based Schacter Asset Management, forecasts the Toronto Stock Exchange 300 hitting 12,000, an increase of about 35 per cent, the Dow Jones Industrial Average hitting 12,000, an increase of about 10 per cent, and the Nasdaq hitting 3,400, an increase of about 40 per cent, some time this year.
Schacter’s top picks are Calgary-based Elk Point Resources (ELK-TSE), Gulf Canada Resources (GOU-TSE) and Advanced Micro Devices (AMD-New York Stock Exchange).
Elk Point, which had a recent price of $4 and a year range of $2.10 to $5.65, is one of several companies involved in the Berkley-operated East Lost Hills gas project.
“The unfriendly bid by a major player (Hunt Oil) for Berkley Petroleum tells you that the value is there at East Lost Hills,” said Schachter, who has a 12-month target of $8 for Elk Point. He made his comments as investors drove the price of Berkley over $11 on news of the unsolicited $10 bid by Texas-based Hunt Oil.
However, the Berkley news didn’t fuel major increases for Elk Point and the other East Lost Hills players.
The money manager has a 12-month target of $10 for Gulf, which had a recent price of $7.65 (year range, $4.41-$9.20), and a target of $25 US for Advanced Micro Devices, a high-tech company with a recent price of $13.81 (year range, $13.56-$48.50).
TRADING TIP:
Some traders try to track virtually every stock in existence. Of course, this is not possible. By keeping a manageable list of about 100 stocks, you give yourself a fighting chance of staying ahead of the game.
HOT STOCK: ZI CORPORATION
ZIC-TSE $11.75
Up $4.25 (+57%) on 187,600 shares (for week ending Dec. 29)
With Zi’s stock floundering, CEO Michael Lobsinger uttered three magic words. He said the company will “definitely be profitable” in 2001. That was music to the ears of punch-drunk tech investors. Zi also trades on Nasdaq (ZICA) where the stock trade 778,000 shares for the week, closing at $7 31/32. Zi still ranks as one of the biggest losers among Calgary companies on the TSE in 2000, down from a high of $59.25.
COLD STOCK: DESTINY RESOURCE SERVICES
DSC-TSE $.28
Down .10 (-30%) on 45,000 shares (for week ending Dec. 29)
Three years ago, Destiny was trading in the $4 range, but the Calgary-based oilfield services company has been in a steady decline since. The fact the company doesn’t have a chief executive doesn’t help. CEO Adrian Erickson and CFO John Newman both resigned recently with the company failing to turn a profit in a thriving oil-and-gas industry.
