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Politics : Formerly About Applied Materials
AMAT 265.39+4.2%Dec 2 3:59 PM EST

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To: Gottfried who wrote (50712)8/16/2001 4:55:08 PM
From: Ian@SI  Read Replies (1) of 70976
 
G.,

I think the Heard on the Street headline is quite misleading. If you read the last couple paragraphs of the column, it admits that most of the loss is a write-off of goodwill, a non cash charge. To imply that collectively the NASDAQ companies haven't made a penny in the past 5 years is somewhat disingenuous.

1. Equating goodwill writeoffs to cash earnings is illogical. [imo]
2. NASDAQ is the home for early stage, high growth companies. i.e. -- Those that are bringing innovations to market. Large investment relative to expected short term earnings is the norm on the Naz.
3. Buying established NYSE companies is no guarantee of success. e.g. - HWP, TXN, KO, MCD, ...

FWIW,
Ian
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