Hello Bill. I'd better answer your messages in this reply. Sheesh. I don't even feel like looking at these markets, never mind posting. Sigh.
I am almost sure that we ARE in a recession, at least in most of the sectors. Cscos's CEO Chambers opined this morning that we are in a recession.
The premarket started off pretty well. But then Lehman and CSFB came in with their earnings reduction in the telecom and chip sector. I believe one of them was talking about the communication chip sector. And of course, most of the brokerages are still harping about all of the tech sector. So it's pretty hard to get the techs moving. There is talk that the earnings in most of the cos. may not even recover in the second half of this year. I am just listening to it all and sit here like a dope with all my tech stocks. But I WILL NOT sell at these low prices. So I guess I will have to stick it out until things turn around again.
Just now Intel said that they will reduce spending by 30%. But at least they are not laying off employees. At this point they will just not rehire employees that leave or retire, I guess.. But they WILL hire absolutely necessary help.
Now as far as your question what I would buy. I am looking at quite a few things and I am sooo tempted. Emlx vs EMC.. This one is not easy. Maybe EMC. Storage will always be needed. I am looking at EMLX again and it does move so nicely when it does. gg. But with all those fiber cos. retreating so badly, I don't know. EMLX sells equipment to most of them. But if those cos. are cutting back, it could hurt Emlx at this time also but then again, it's hard to cut back on some of the necessary equipment.
Actually, I am looking really hard at NT right now. Look at the PE diff. between NT and Emlx. But then again, look at LU and who knows if NT will go that route some more. Down I mean. At this point every stock could go down some more, I guess. Some are talking about NAS 2000 and I am not sure which tech stock could withstand a downturn then. But, let's hope that NAS 2000 will not happen. But if it does, I WILL buy more than 1 stock.
MO. Like I mentioned to you before. I sold out at 33 or 34 after buying back into it at around 25. Targets right now are 60 to 65. Kraft is supposed to be worth 37? That means you get MO for free and with this Justice Department, all those suits may get fewer. I am watching it. I agree. It's almost 48 today after it has gone up some more.'
In hindsight, I should have sold all of my stocks last year and wouldn't it be nice now to buy all those cheap stocks.
What irks me the most is those analysts. When the stocks were 70 to 80 % higher, they said: Buy, buy, buy. Now when those stocks are sooo cheap, I guess it depends what cheap is, now they say: Sell, sell, sell. It looks like we have to make up our own mind when to buy some of those, maybe washed out, stocks.
I am glad to see WCOM up in this market. I would probably even look at that if I did not own so much already.
We need more rate cuts and a big tax cut. And I still wonder why Mr. Greenspan is so quite on why our economy is in this messy state. I am convinced it was most of HIS doing. He raised interest rates like a drunken sailor. Yes, there were other things involved, like stock prices too high etc. But I believe high stock prices would have taken care of themselves without all this intervention by the FED. INFLATION was never a factor in my mind. And this was supposedly his biggest worry. Maybe he will mention this one of these days. But in the meantime he needs to cut, cut the interest rates.. I would like to see it this month.
Sonny |
