<<<I bet lots of folks thought they were 'real smart' over the past two years just buying those 'techs' and sitting back, watching that counter go up.>>>
Yes John, you cautioned us about that in 1996(G). Guilty as charged.
But the world changed under our feet, with other factors at work
1. Too many bulls- After years of bull market, the only respected analysts on Wall Street Week and in selecting of tech funds were bulls. Bears lost their voice and vote, so the Street is still saying upward and recovery.
2. To provide the new technology needed by existing bankers, phone companies, brokers and utilities
they encouraged, until 1999, an unsuspecting public to invest huge sums in new companies and in expanding existing tech companies.
That picture has changed today, with enough tech companies funded they can not only provide the products desired but also engage in cut-throat competition which will
reduce technology cost to the "old establishment" companies
Dell, for example, with $8 bil to work with and esentially no debt, needs no farther public investments
to stay in business and grow. In regard to GLW, NT, and JDSU
who have huge backlogs to meet, I don't know whether they need more equity investments, but they have been selling billions in bonds and issueing stock.
So here too, perhaps they have enough capitalization and have peeked or will soon peek in stock price.
Alas, how soon they forget the poor invester whose money made their growth possible.
IMO a general statement could be that if new money
does not flow into an equity (or is attracted to) the price will deteriorate. Dell needs either blowaway earnings, an
attractive new plan ( buy Gateway)G, or an improvement in the Nasdaq with money looking for a good home.
Sig |
