Ask DrBob Message Board - Msg: 16063784

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Ask DrBob

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: gem-x who wrote (39568)	7/12/2001 2:13:45 AM
From: mishedlo	Read Replies (1) of 100058

No scare tactics, just the truth. JNPR will hit $10 before all is said and done, same for CIEN and about everything else. They all get sliced in half easily if not more. Even companies like SEBL that actually have a PE will get sliced in half. Not trying to scare anyone. I am VERY heavy in cash with some Sept QQQ puts as everything else is closed out except for a QLGC short today at about 50. Perhaps I close that out on the first dip tomorrow AM or perhaps I ride it out. It simply amazes me with all this information out there that people think these companies are a buy at these levels (except for technical reasons). On a fundamental basis there are almost NO stocks on the Naz that rate a buy. PE's are thru the roof. It will take years before people see the light of day. But.... the fact remains we have had the biggest mania in history and it will take years to unwind it. Look at ROOM HOMS VRSN all total joke internet comapnies with HOMS being an outright scam IMHO. How can anyone not see we are STILL in one huge bubble. Everyone looks at how far we have fallen instead of how far we need to fall. EBAY at a PE of 260!!! Is that rational. 260 years for a $1 investment to return $1 in profit. At least it has a PE! VRTS does not make dime 1. Assume a growth rate of 100% for EBAY (absurd of course) then you only have to wait 130 years for $1 to return $1 in earnings. If they can keep growing 100% for 5 years PE might get to something only overvalued instead of insanely overvalued. Right now it is up cause it did not fall fast enough and idiots chased it (well they are not idiots if they sell now). Right now we see chart huggers buying NVDA EBAY VRTS VRSN cause of strong charts. Last year it was PWER and Gilder's PowerCosm garbage that everyone was chasing. PowerCosm is in the gutter where it belongs. Next year it will be some other horsesh*t that is now obscure and VRTS will be in the gutter. The market always needs a set of stocks to believe in even when they are all junk. The remaining sheep chase whatever is going up, until they warn and fall 30% overnight and the sheep stay with them from $270 to under $30 like they did with JNPR. M

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next