Ken Deen's
			   THE AGGRESSIVE TRADER
			     SELL SHORT ALERT
                                                           1339 Virginia Rd.
Vol. 1, No. 41                                           Montecito, CA 93108
April 24, 1992                                                (805) 565-2039
3:19pm EDT                                            CompuServe: 72020,2050


   Stock+Options Account:
      * SELL SHORT Compression Labs (Nasdaq: CLIX).  Today I sold short 100
        CLIX at 18 3/4.
 
   Model Portfolio:  No trades


Discussion:  Compression Labs

   Compression Labs manufactures and markets two-way, color video-conferencing
systems.
   The company announced flat earnings late today of six cents a share, less
than Street estimates.  At least one brokerage has lowered its rating on the
stock.  The previous quarter (Q4 '91) was also a big disappointment, with a
13% drop in earnings-per-share.  This appears to break a long period of
extremely rapid growth for the company.  Estimates for '92 earnings were
running around 61 cents a share last week, up 94% from '91 earnings of 31
cents.  I expect these estimates to be cut, perhaps dramatically, over the
next few days or weeks in light of today's disappointing report.
   Hot growth stocks that turn in disappointing earnings (and even some which
meet Street expectations) have been getting hammered lately.  Compression Labs
has already taken a big hit in the past three months, having dropped from a
high of 35 in early January.  With a still sky-high trailing P/E of 71 and
flat earnings announced today, the stock remains quite over-priced and likely
to sink further.


A Note on Short Selling

   I have previously stated that I prefer to buy puts rather than to sell
short when taking a bearish position.  I have changed my stance; I will
explain why in the next monthly report.  In brief, a short equity position
is less risky than a long put option position.