As the froth subsides

CI Technologies, maker of industrial automotive software, is a great company. It turned in a $10m net profit for the year to December and paid out a fully franked 8.5 cent dividend. We think that subscribers should HOLD and await an opportunity to buy in at lower levels.

Businesses like E*Trade will not be able to maintain their status as market darlings without making money. The company turned in a loss of $6.1m for the half to December, and recent price wars in online trading augur ill. SELL.

EasyCall International is expanding into Asia rapidly, most recently establishing an Internet equipment network in the Philippines. Operationally, this is a good company, but it could be in for some more turbulence as the market continues to lighten tech stocks. HOLD.

Hotcopper is in a similar situation to E*Trade. It booked a loss of $947,000 for the half to December, although its saving grace over the last few weeks has been a one-for-six share swap offered by BourseData. So far acceptances have been received for 48% of issued capital and, with the offer due to close 8 May, there is still a good chance of the takeover succeeding. ACCEPT OFFER.

We like Intellect Holdings, a developer of smart card and electronic payment systems. It turned in net profit of $5.9m for the last half and has good prosects. Now is no time to buy, however. HOLD.

Keycorp's growth plans and smart card-related areas have created a lot of interest lately. But, until volatility eases we're opting for a HOLD recommendation.

Open Telecommunications lost just under $2m for the half to December. We thought it looked a bit pricey in issue 47, and since then the price has climbed precipitously. We strongly advise that you TAKE PART PROFITS over $8.00.

Securenet has been one stock we have always had trouble keeping up with. It could be said that we missed the boat from the beginning as we only reviewed the stock for the first time in issue 31 recommending that subscribers Take Part Profits at $1.44. The share price had already risen from a low of $0.19 the year before, so at the time we thought that a bit of profit taking was justified. But the share price kept on heading north to a high of $18.90, before its downward spiral. We're still cautious though. Not because we don't like the company's prospects, but because, even at these prices the stock is still ludicrously valued. TAKE PART PROFITS.

Telco Australia started life as a reseller, but went on to get its fingers in many and varied pies like developing global positioning software and commercialising a unique hydraulic lift mechanism through its investing activities. Being a reseller in the telecom industry offers little room for growth - the competition is too fierce - but the way to remedy that is not a scattergun approach. SELL.

After a mighty stag for couple days, travel.com.au's share price floated gently back toward reality and it now sits marginally above its issue price of $1.25. We don't think it's in the same league as Flight Centre, as reflected in its $3.6m loss for the latest half. SELL.