cheryl,
For a change, how about some quality posts that prove that you actually know how to think instead of useless blather
OK, here's one for you. I think the number one lesson people will learn out of this mania meltdown, if they haven't already learned, is that stock price and company performance aren't the same thing. You and many others seem to think that since SUNW traded at $65 at one point this 70% haircut is unjustified. The business certainly isn't 70% down, so why should the stock price? Well that's not how the market works.
I think I have had quite a few thoughtful posts over the past year. I pointed out S&P commercial short positions, investors intelligence bullishness, plenty of historical information from past bubbles, etc. You just chose to not listen to any of it and dismiss it as pointless dribble. Ken and many others have also brought up the same points, which you've probably also ignored. To understand any of these contrarian points, the first thing you have to realize is that in normal times, most stocks are maybe priced within 25% of where they should be, as manias pick up steam some stocks can be overvalued by 25-250%, as manias peek the sky is the limit as to how overvalued stocks get, and when mania's implode the end result at bottoms is historically that stocks as a whole end up undervalued [meaning quite a few will likely drop below book value].
Duck Breath |
