Tom, I can not comment on energy stock because (yikes, I have never followed them). That said, we are probably in the later stages of the bear market not the initial stages.
Total garbage has been discounted to near zero (AMZN, YHOO, ASKJ etc down 90% or more in some cases).
Next hit were the high fliers, chopped in half or more, followed by the old guard (CSCO etc) also chopped in half or more.
Where we do agree is that there is still a lot further to fall. Based on the MSFT PUT article I posted, I simply have no idea how far it could fall in bad circumstances. If it falls in half from here, it would have potentially $10B in liabilities. Oddly enough, that $10B in liabilities would make it worth even less, thereby tirggering further declines. Comments on this possibility? Good time to buy PUTs? Thinks MSFT is selling any more?
Also people are chasing anything that moves up. Look at EMLX (strong chart .... yeah right).
Do you have a feel for KEM or SSTI? These are a couple of the few and far between tech stcoks that seem to have a reasonable PE vs growth.
M |
