Prime Stock Advisory Letter for December 10th, 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 finished yesterday essentially unchanged.  The market appears to be moving sideways in a holding pattern while it decides what to do next.  I feel that the impeachment proceedings in the House of Representatives has the market on hold while it waits to see the outcome of those proceedings.  The chart pattern on the major market indices continues to be unclear as to its future direction.  I believe it has a bias to the downside but I prefer to sit on the sidelines again today in respect to index options.

Recommendation SELL/SHORT

Company:   J.P. Morgan & Co.      Symbol: 'JPM'        Closing Price: $104.19/share.
YH: $148.75     YL: $10.125    EPS: $5.60    P/E: 18.6     Forecasted EPS: $6.53
Dividend: $3.96      Yield:  0.38%    Ex Dividend: 12/17/98
Price Targets:  $94.125 & then $89.625    Upside Stop:  $107.125
Options Recommendation: December 105 Puts,  Symbol 'JPMXA' @ $3.875/contract.

Company Description: This company is a major money center bank.

Recent News:  12/10  JP Morgan to have a poor 4th quarter.
12/09  JP Morgan to take a $100 million 4th quarter charge

Our Analysis: The shares of 'JPM' closed below a key support level yesterday on heavier than normal trading volume.  They should continue to move lower and test $94.125/share,  the point from which they gapped higher in early November of this year.  If the shares close below that level then they should continue to move lower and test $89.625/share,  a point of support established in late October of this year.  Yesterday the company announced that its fourth quarter results would be below expectations.

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 1996-97 Sterling Investment Services, Inc.
PO Box 191767, Atlanta, GA. 31119-1767
Fax 404-816-8830
404-816-8240
Home | EMail Service | Fax Service