TigerInvestor.com: The site for aggressive investors 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 : TigerInvestor.com: The site for aggressive investors

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Tae Spam Kim who wrote (1010)	3/12/2000 2:51:00 PM
From: Tae Spam Kim	of 1022

Nasdaq 5000 by Ram Seshadri - A TigerInvestor.com Article Nearly a month ago (Feb 6) I predicted that the Nasdaq 5000 was ahead based on strong seasonal factors. It is now a reality. I am not going to feign surprise that it happened sooner than I expected. In fact, I am not surprised at all. Anything can happen when investors have lost sight of prices to pay. It makes no sense to quibble about the price when you are paying $1 mln for a Toyota Corolla. Believe me, the Corolla is a solid performer and an excellent car, but ultimately it has a certain intrinsic value in the market and that is around $20,000. Paying anything more is just an arbitrage opportunity. You see something more in it that I don't and I am willing to sell it to your for $1 million while you are laughing silently in the belief that you can sell it for $2 million. I say good luck to the investors who are chasing Ariba (ARBA) or Redback (RBAK) at these prices because I believe that you don't have to overpay for this stuff. A market is not all about growth or all about value. It is a combination of both. But currently in this market it is all about momentum. Make no mistake about it. I may be buying and selling stocks and options but I believe that at the end of the day a 20% return per year is a good return. However, if I get a 100% return, I feel even luckier. But I am not going to demand it or chase it. Keep this in mind as you buy and sell securities. Just to show you how the Nasdaq got to 5000 today, I will illustrate with a simple example of how prices for a Corolla get bid up to $1 million in the stock market. Redback Networks went up 32 points today as an analyst at FS Van Kasper reiterated his STRONG BUY rating on the stock and increased his price target from $270 to $758 calling RBAK/Siara the first of the "NextGen" vendors to gain expertise in optical switching, ASIC design, routing and "value-added" services software. At a $758 price, RBAK would have a market cap of over $33 bln on company revenues of $64 mln last year. Enuff said... Note about today: I believe that the near-term trend in the Nasdaq is up though it will close below 5000 tomorrow or Monday before climbing above 5000. The Nasdaq highflyers who have reached mass/public recognition should be viewed as possible "winners" this month as mutual funds hurry to buy the "winners" by the end of the quarter. Folks, I believe this to be real and a trader's edge. (Disclosure: As of this writing, I hold none of the stocks/options mentioned in this column though positions can change anytime).

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next