Booms, Busts, and Recoveries Message Board

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Strategies & Market Trends : Booms, Busts, and Recoveries

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To: flint who wrote (4612)	6/9/2001 11:57:20 PM
From: lisalisalisa	of 74559

Don't know about the housing market but I found these quotes from the article you linked interesting: "By the time our lots are on the market, a lot of the ship may be righted," Irish said. "What's Level 3 going to be like on Aug. 1?" And, he said, "There's a lot of money around town without Level 3." "Everybody believes the stock is going to come back," said Shramek, who owns shares himself. "They've just kind of put it off. None of them has canceled or wanted their deposits back. They still plan to do it. "I've been through hell. Right now it's a challenge. But if it's going up, I want to enjoy a little paradise. It could be a different world out there next year." The story isn't over yet. Level 3's chief executive, James Q. Crowe, believes that the company will win out in the end, and that shareholders will be rewarded for their faithfulness. People are blindly holding on and hoping, actually banking on a swift second half recovery. Expectations have not really been tempered, just "delayed". Many investors still expect 20-30% a year stock appreciation going forward as a given. Almost like the last year was a fluke and the preceding bubble years the norm. This difference between expectations and ultimate reality will be shocking for some I think. Even with "normal" growth, expectations are way out of line and already more than priced in. How long can easy money support these valuations coupled with deteriorating earnings? I guess that's the big question...

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