Booms, Busts, and Recoveries Message Board

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 : Booms, Busts, and Recoveries

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: smolejv@gmx.net who wrote (6450)	7/31/2001 11:43:34 AM
From: GraceZ	Read Replies (2) of 74559

Your point is - correct me if I'm wrong - there's enough big-cap companies around that haven't lost their shirt as compared to the companies in the indeces Actually my point is not about big caps it's about the wider market. When you get away from the big caps and tech wrecks that are making the news and making indices flounder you see a sea of companies that are doing rather well. If I do a Yahoo screen to find all companies 100 million and up I get 3709. Of those, 1444 are up, stock price wise, 15% or more. One could say that was the Ponsi scheme just spreading out until you also run screens on earnings. 1473 have PEs 20 or below. 345 have PEs 10 or below. If you look at some of these companies financials you aren't always seeing the huge debt, losses and declining margins that have been common place among the "new economy" companies we've been skewering here or the big caps that make up the indices. I know that there is a rising PE on some of the well known names and high flyers, I've been watching this for over a year. PEs are rising faster than earnings are falling. My point is, just as the indices masked the over all Bear in small and mid-caps during the rise, the indices are now masking a Bull in small and mid-caps. If you listen to CNBC you'd never know that there were so many companies whose stocks have done so well over the last year. It certainly runs counter to the collective wisdom on this thread and it doesn't fit the profile of a secular Bear. A secular Bear gets everyone, large or small. No one answered my most important question. If we are going to make comparisons between the market today and 1929, what happened to the average stock during that secular Bear? You are right that many companies are going back from whence they came. If I look at certain sectors of tech I see nothing but devastation. Just scroll through these charts: bullsector.com then click on A through ZIGO to see charts Needless to say a lot of these companies will be gone before the year is out. But they aren't the whole market or representative of the economy as a whole.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next