Prime Stock Advisory Letter for December 24th, 1998

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Today's Comments: The overall market moved sharply higher in a broad based rally that took almost every sector of the market with it.  The high tech sector has exceeded my upward expectations and appears to over extended.  Most of the stocks in this sector, particularly the Internet stocks,  have risen to such heights that you need a magnifying glass to see the earnings in the "price to earnings ratio".  But hey,  since I am not Superman I am not going to make any attempts to stops a speeding freight train.  But do keep in mind that playing these stocks is trading and not investing.  The market closes early today,  and most of the market professionals I know are taking the day off.  As a result this will probably make the market a little on the unpredictable side.  

I would like to take this opportunity to wish everyone a Merry Christmas or Happy Hanukkah.  I am very much looking forward to 1999.  I feel that it can be one of the best years yet.

Company: Global Directmail Corp.        Symbol: 'GML'    Closing Price: $19.94/share.
YH: $23.0625      YL: $9.25       EPS: $1.14      P/E: 17.3      Forecasted EPS: $1.23
Dividend: N/A   Yield: N/A        Ex Dividend: N/A
Price Targets: $21.875  & $23.875        Downside Stop:  $16.875
Options Recommendation: January 17 1/2 Calls,  Symbol 'GMLAW' @ $2.75/contract.

Company Description: This company is a direct marketer of personal computers and related products.

Recent News:  12/09  Global PC Brands make Fortune,  PC World "BUY" lists
11/02  Computer Shopper names Global Private label PC tp top 100 list

Our Analysis: The shares of 'GML' closed above a key upside resistance level yesterday on heavier than normal trading volume.  They should continue to move higher and test $21.875/share,  a point of upside resistance established in early May of this year.  If the close above that level then they should continue to move higher and test $23.875/share,  an upside resistance level established in September of 1997.  The company recently had its computers added to the Fortune magazine recommended list for quality and value.

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