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Year of the Tiger performance review:
Webhead for profits
by Chung-Hau Ng
The Webhead picks of our late friend Bill Sanders closely mirrored the breathtaking performance of the Internet Mania: If you took Bill at his word in the 1998 Forecast Issue, you would have invested in Rambus, Inc (RMBS-NASDAQ), makers of high speed chip-to-chip interface technology. In mid-December ë97, RMBS was trading in the mid-forties at around US$44.125. RMBS closed on December 31, 1998, at US$96.250 for a 118.130% return. Even more impressive is that Rambus hit a 52-week high on January 8, 1999 peaking at US$109.938. That’s a 149.151% return.
Real Networks, Inc. (RNWK-NADAQ), also included in the 1998 Forecast issue, makes software which enables the delivery of streaming media content over the Internet. RNWK was trading at around US$15.625 back in mid-December ë97. By December 31, 1998, RNWK closed out at US$35.875 for a 129.60% return. Real Networks hit a record 52 week high on January 12, 1999, at US$70.50 for a 351.20% return.
The third company Bill picked early in 1998 is USWeb (USWB-NASDAQ). USWB provides Internet professional services such as web design. USWB hit a 52-week high of US$38.750 on April 22, 1998. That’s up 273.494% from its price of US$10.375 in December ë97.
The winning picks didn’t stop there. Oracle Corp (ORCL-NASDAQ) was trading at US$30.625 back on March 30. By December 31, 1998, ORCL was at US$43.125 for a 40.816% return. ORCL just set a new 52 week high on January 19, 1999 at US$52.062 for a 70% return.
VocalTec Communications (VOCLF-NASDAQ) provides telecommunication software that enables voice and audio communications over the Internet. VOCLF turned a quick 7.018% return in just 4 weeks. VOCLF was trading at US$17.812 on April 27 and reached US$19.062 on May 15. VOCLF never made it back to its 52 week high of US$24.625 and if you initiated the 20% stop loss, you would have been stopped out at US$15.250.
Seattle Film Works (FOTO-NASDAQ), a provider of photo finishing and digital imaging services and products, was trading at US$3.375 in late September. FOTO peaked on December 16, 1998 at US$6.438 well short of its 52-week high of US$13.188 but nevertheless an impressive 90.756% return in two and a half months.
The webhead portfolio averaged a 109.969% return for 1998. On January 19, 1999, the December lows had been left behind in a cloud of dust, when Bill’s picks had appreciated an average 130%.
What can we say...Bill: we miss you.
| Taipan Webhead Portfolio |
| Symbol |
$Buy |
High |
20% Stop |
Dec. 31 |
P/L(‘98) |
P/L(1/19/99) |
| RMBS |
44.125 |
109.938 |
87.95 |
96.25 |
1.1813 |
1.49151 |
| RNWK |
15.625 |
66.375 |
53.1 |
35.875 |
1.296 |
3.248 |
| USWB |
10.375 |
38.75 |
31 |
stopped |
2.73494 |
n/a |
| ORCL |
30.625 |
52.062 |
41.65 |
43.125 |
0.40816 |
0.69998 |
| VOCLF |
17.812 |
19.062 |
15.25 |
stopped |
0.07018 |
n/a |
| FOTO |
3.375 |
6.438 |
5.15 |
stopped |
0.90756 |
n/a |
| Average Return on 1998 Positions: 109.969% |
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