The Naked Truth - Big Kahuna a Myth Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Naked Truth - Big Kahuna a Myth

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: accountclosed who wrote (76543)	11/21/1999 7:33:00 PM
From: Dwight E. Karlsen	of 86076

It's true: earnings are a drag on stock price performance: L. Keith Mullins, emerging-growth strategist at Salomon Smith Barney, has taken the analysis one step farther, wickedly pointing out one sure-fire way to have made a ton in small-caps: Buy only Russell 2000 companies that are expected to lose money. He jests not. Through November 12, while the Russell 2000 was up 6.6%, shares of those companies in the index that are generating nothing but red ink jumped 49.7%. "People don't care about cash flows," Mullins laughs. "They don't care about earnings. They care about momentum." He has been urging tech investors among his clients to be "very careful." He cites such danger signs as the quickening influx of money into aggressive growth funds, the torrid rise of tech stocks while the advance-decline line is flat and the most frenzied market for initial public offerings he has seen in 20 years. "The average first-day return of IPOs in October was almost 100%,"he marvels, "and that's just not sustainable." interactive.wsj.com from Barrons (subscription required)

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next