Prime Stock Advisory Letter for November 23th, 1998

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 on Friday.  There was solid across the board strength in the majority of the sector indices I track.  The only weakness was in the Biotech,  Gaming, Airline, and the Natural Gas Indices.  From a technical standpoint the overall market continues look positive.  From a fundamental standpoint the market continue to look like it is richly valued.  But that has never stopped it from moving higher.  The Bottom Line:  The overall market should move higher.

I apologize for the difficulties in the delivery of our newsletter last week.  I believe we have corrected those problems and should not experience any more problems in the future.

We have published an in depth Small Cap Research Report on Greg Manning Auctions, Inc. 'GMAI'.  This report can be viewed on our web pages at www.sterlinginvestments.com/gmai
 

Company:   Banker's Trust       Symbol: 'BT'      Closing Price: $77.25/share.
YH: $136.46     YL: $45.00       EPS:$0.53       P/E: 145.7      Forecasted EPS: $5.67
Dividend: $4.00       Yield:  0.51%        Ex Dividend: 9/23/1998
Price Target:  $92.125 & $99.00       Downside Stop:  $73.125
Options Recommendation: December 75 Calls,  Symbol 'BTLO' @ $7.125/contract.

Company Description: This company is a major money center bank and is the parent company of the Alex Brown & Sons investment banking firm.

Recent News:  11/23  Wall Street Journal,  Banker's Trust / Deutsche Bank near merger agreement.
11/13  US banks and brokerage stocks rally on Brazilian loan package

Our Analysis: Banker's Trust is a component of the Philadelphia Banking Index 'BKX', and the S&P Banking Index 'BIX'.  I have rated both of these indices as moving higher from their current levels.  The shares of 'BT' closed above a key upside resistance level on heavier than normal trading volume on Friday.  The shares should continue to move higher and test $92.125/share,  the point from which they gapped lower in late August of this year.  If the shares close above that level then they should continue to move higher and test $99.00/share,  a point of support established in mid August of this year.  Over the weekend the New York Times reported that Frankfurt, Germany based Deutsche Bank AG is in talks to acquire Banker's Trust for $90.00/share.  A review of subsequent news reports indicates that it is not a "done deal" yet,  and their is some skepticism among some analyst as to if the deal will actually happen.

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.