Dow Jones 10812.86 +64.07 9:46 am PST, February 25, 2005  NASDAQ 2060.27 +8.57 For info, visit access.smallcapnetwork.com S & P 500 1209.15 +8.95 Change your subscription status here Russell 2000 633.22 +5.66 VOLUME 05: ISSUE 15  Feature: SCBLOG Saves You Money. Big Time. One of the neat things about the SCBLOG is that we bring readers tips, opinions and trading ideas to not only make money, but to also help avoid those momentum traps that exhibit signs dedicated to the destruction of your trading funds. You'd be wise to get on over there. To us, a trap is a momentum stock play that appears to be going up based on unrealistic expectations, perceived future prospects that are priced in now, or simply a reaction to the media's continual coverage of an issue. And therefore vulnerable to an external shock that we feel will eventually rock the share price. We also tend to come up with alternatives, although sometimes they may appear strange.  Chocolate over Satellites. Yahoo! Case in point: November 24th, Sirius and XM Radio could do no wrong, apparently. We disagreed. The shares were $7 and $36.50 respectively. Today they are $5.40 and $29.30. We suggested then that we felt boring old Hershey looked good at $52. Today it's $63 and even the options would have been a good play. We also brought up the problems with market fave Travelzoo earlier in November when this apparently can-do-no-wrong beauty was $100. It's now $63 a share and still overpriced. Google and Yahoo. We missed the run-up in these two, but I'd rather be out than stuck. We suggested that the fundamentals for Intel and Microsoft looked much more attractive and a switch at the time--January 19th--would have been sweet as GOOG and YHOO have gone south while INTC has risen and MSFT is idling. Besides, who's got enough risk capital to buy a decent position in Google? 100 shares will set you back around $18,750--about as much leverage as matchstick under a boulder. If the shares did happen to go to $225 you'd make a snappy $3600. That's IF it gets to $225. I'll get (more) mail. Current flavor of the month--or maybe the quarter-- is Apple. This is a tough one, but all the positive brouhaha may well come home to roost. Once the iPod news faded, the media immediately latched on to a possible TiVo take-out. Apple would likely make its own gizmo rather than strap on TiVo and try to digest it. Apple ain't broke, so no need to confuse brands and add TiVo, warts and all. That said Apple investors--especially those considering a new or initial purchase-- should be careful. Good as Apple is, the market action feels risky to me. Unlike some of the other traps we've mentioned, Apple is a proven player with butt-kicking products--although, as I mentioned in our previous piece, maybe too many-- decent cash on hand ($6.5 billion or $16 a share) and nicely growing revenues. We merely feel that the price has risen too far too fast. And most importantly, analysts are rapidly upping revenue, earnings and price targets so as not to be left behind the herd. And again, even after the split--February 28th--it's a matter of leverage. Write some Apple covered calls, sell a percentage of your cheap stock to lower your cost base--but do something. An external shock would rock this stock, which has been rising virtually non-stop for two years. The bottomline is that we'll continue to track and comment on 'flavors of the month' on the SCBLOG. I'm starting to see some good comments coming in and hope to continue some great dialogues with y'all. And, of course, I'd love to hear about stocks you feel are overpriced or traps especially among the big caps. Send 'em in...     We Value Your Feedback Got comments, questions or suggestions? 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