<<<Ok, I just heard a guest on CNBC say the following about MSFT: "Fortunetly we have never owned it.">>>
Hehe, I thought the same thing when I heard it.
An even more ludicrous statement, though, comes from these rah-rah types who are now saying, "if we enter into a recession, the place to be is tech." Ummm, where did these guys attend B-School? In a recession, there are very few stocks you'd want to own, but I can assure you, the LAST thing you'd want to own are stocks trading at 200x next year's earnings. Not only that, many of these techs are reliant on going back to the market for secondaries (read: cheap sources of funding) in the next 12-24 months. If the Nasdaq dries up, so does the cheap and easy source of capital, and their earnings models would have to be substantially revised because of it.
I am surprised no one at CNBC has had the guts to come out and interpret these yo-yos' market calls as, "we're recommending the still-overvalued tech stocks because their future secondary offerings represent a big source of income for our investment banking arm. If these stocks fail to rebound, our investment banking income will dry up; ergo, these are the stocks that your viewers should be buying." No one has the guts to say the emperor has no clothes.
Kudos to Michelle Caruso-Cabrera for giving both sides of the Intel story today. Her talking about the SG Cowen INTC call was good journalism; usually you only hear the bullish side of the story. |
