SHORT SQUEEZE ALERT!

We Strongly agree with friends of VistaPrint on this Short Squeeze Alert!

Covad Gets $50M Credit Facility From Silicon Valley Bank - Symbol DVW

Dow Jones Real-Time News for InvestorsSM
4:55 p.m. 04/13/2006

Dow Jones Newswires

Covad Communication Group (DVW) obtained a two-year, $50 million senior secured revolving credit facility with Silicon Valley Bank.

The San Jose telecommunications company said the credit facility its available for general corporate purposes.

As part of the transaction, Covad redeemed its existing collateralized customer deposit liability with AT&T Inc. (T).

Covad also withdrew its unused universal shelf registration statement filed with the Securities and Exchange Commission in October.

Word On The Street Is That VistaPrint May Blow Away Their Numbers On The Next Earnings Release!

VPRT is running again. The stock finally breaks above the downward resistence line that started on March 21 triggering a technical "Buy" signal. Also, the float is very very tight and in solid hands and there are about 687,000 shares short! And, short buying and continued Institutional buying could fuel us up to the $35.00 - $37.00 level soon. We have seen this before on VPRT.

Lastly, VistaPrint is a favorite Internet pick for Goldman Sachs, a premier Wall Street firm in New York. Upgrades may be in the works.

VoIP To Reach $18 Billion By 2010

According to a new report by Juniper Research, the market for VoIP business services is set to reach $18 billion by 2010. This will bode well for investors in Covad Communications - Symbol DVW.

VoIP News Article

All Eyes Are On Oil These Days - Oil At $69 Per Barrel

Most of the OPEC members are already producing close to the limit and the group has missed its 28 million barrels per day output target every month this year, mainly because rebels have shut down a quarter of Nigeria's output.

Energy Prices Retreat - A Bullish Sign

Thankfully, oil and gas shares dropped Tuesday after initially showing strong gains as crude prices retreated from historically high levels. Notably, the Philadelphia Oil Service Index (OSX) suffered the greatest decline, losing 1.9% to 212.95 points. Also - the Amex Oil Index (XOI) fell 0.6% to 1,106.

The market sectors that sold off over the last two days and the investors who retreated into gold should come back strong as oil prices continue to drop.

High Oil Prices Should Boost Coal - ACI and BTU

Sector Sell Offs Due To Oil And Gas Fears

Stocks are selling off a bit due to worries over oil and gas prices. Crude futures are holding above $69 per barrel, making some worried investors shift into gold as a "safe-haven". Gold is now over $600 per ounce.

BWNG - DVW - CCOI Prime Takeover Candidates

Today stocks were seen as opening higher amid several mergers and acquisition announcements. Alcatel (ALA) put speculation to rest and says it will buy Lucent (LU) in a $3.45 billion deal, valuing LU shares at about $3.01 each. Also - Iconix (ICON) says it will buy Mossimo (MOSS) for $7.50 per share in cash and stock. Aztar (AZR) receives an offer from Ameristar Casinos (ASCA) at $42 per share in cash and Alderwoods Group (AWGI) will be bought by Service Corp (SCI) for $20 per share in cash. Lastly, General Motors (GM) rises on news it sold a 51% stake in GMAC.

Broadwing - BWNG - Still In Accumulation Mode

BWNG was downgraded from a Buy rating to Accumulate today by Janco Partners that set off a number of weak hands (day traders) or stop orders that spurred some selling on this news. This negative trading activity was unwarranted in our opinion. Nothing has changed with Broadwing except their increased marketing efforts in broadband and IP services to enterprise partners that should produce continued growth over the next several quarters. To reiterate - the company was "not" given a Sell recommendation, but rather an Accumulation rating. Accumulating on dips is not a bad idea especially after today's activity.

We Scooped Jefferies & Co. on Their Buy Upgrade on Covad - DVW Today

DVW is running now and should continue for a while.

Covad Communications - Symbol DVW - Merriman Curhan Ford Has A Target Of $5.00

Covad is a leading provider of Voice over IP, VoIP, and Broadband services.

As much as we dislike looking at a $2.00 stock, investment banking firm Merriman Curhan Ford has a target of $5.00 near term on DVW. We think this is due to expected positive earnings to be released and expansion of broadband services and partnership deals that have already been announced. Broadband services appears to be an explosive area to be an investor in at this time. We feel that we are on the ground floor on this investment. Stay tuned.

Broadwing - Symbol BWNG - Merriman Curhan Ford Targets $19

We spoke to the investment banking firm Merriman Curhan Ford and they put a Buy recommendation on BWNG yesterday with a price target of $19. Their head of investment banking was the top analyst at Thomas Weisel Partners. Most analyst targets that we have seen lately have been very conservative. We still see this stock at $30 by summer as previously posted.

PALM Continues To Trend Up

BWNG reminds me of VPRT at $15.00.

We had some brave souls who tried to keep shorting every other day or so on VistaPrint (VPRT) and not surprising to our due dilligence, the stock blew right through to $37.75. OUCH!

VPRT Chart at $15.00

We are making a call to $30 by summer on Broadwing - BWNG. This is not the ending target though as we suspect very significant news is pending. If we told you the real LT target you wouldn't believe it. Stay tuned.

Our PICKS Continue To Look Strong - PALM, VPRT, SVI, ARII, OS, BWNG

Broadwing - All Indicators Point to $30

Broadwing Stock Chart

BWNG - Added To Our Short Squeeze Alert

With over 6,894,000 shares short it this would take 2 - 3 days to cover this position given the average daily volume. Also, the stock is breaking new 52 week highs weekly if not daily, so we strongly feel that the shorts will throw in the towel and continue to cover on BWNG as the stock breaks into higher ground.

Is would not unreasonable to see BWNG at $17.00 - $20.00 level soon if this occurs.

BWNG Another RMBS at $15.00??

Broadwing - BWNG looks like another Rambus - RMBS when it was $15.00. Now Rambus is approaching $40.00. Rambus - RMBS 6 Month Chart

Broadwing - BWNG Is Our Favorite Pick Now

BWNG breaks out this morning above the critical $15.00 level. This technical breakout should move the stock to the $17.00 - $20.00 level soon.

Telecoms are HOT again as evidenced by the Lucent takeover announcement.