Fortunately, mutual funds should complete their selling the end of this month, which is the end of their fiscal year. This alleviates the tax loss selling issue.
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(Re: Michael Murphy -- did you read the article about him in the special issue of Money this month? He is a former bank robber who robbed banks because he needed money for drugs. His rich friends helped him receive a pardon. Great. The writer, Lisa, really wrote an interesting article on MM. His newsletter promoters asked him if he was going to mention on his website that he was an idiot because so many of his subscribers said he was an idiot!
Scathing article.
His mutual funds have performed horribly. As far as his newsletter, I think he simply takes the largest companies on the nasdaq and recommends them.
Then where he comes up with some of his smaller cap picks, God above only knows!
His other newsletter has performed even worse.)
Why would MM not continue to recommend CDO at this point, assuming one is just waiting for tax loss selling to finish (10/31/2000)? I think it is because he is a hypster, an ex-con, and is bailing on his subscribers at the last moment.
But these are just my opinions. :)
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Unfortunately, no one can predict what the consequences will be from the all of the venture investments that CDO has made. The last cc indicated that reserves had been increased, but the IPO/telecom industries have changed drastically since the last cc. There will be a lot of losses from the looming telecom slowdown, and capital infrastrastructure slowdown. On a positive note, CDO does own a stake in Transmeta.
The company is being led by a college dropout, who happened to be the son of the former CEO. Great. Rich kid, no experience, and is failing at the helm. Let's put more money into the stock.
The company's financial statement is horrible. The credit rating was recently reduced. And what are the possible ramifications if there are significantly higher than currently expected losses at the Venture unit?
I don't even know what the core business strategy is for CDO. Sad.
Having said that -- I think that the stock has some upside. The company can sell all of their assets to refocus and change management. But considering Nick owns a bundle of stock, that won't happen. So who knows going forward.
I am just expressing my opinions. I wish the best for everyone. |
