Techie, the Dow closed above 10,350 today, which is an important technical level. We may be seeing some strength in the NYA and Dow possibly due to some rotation out of tech.
In the end, all the indices were quite oversold, and a bounce was to be expected anytime.
By the way, you can avoid stuff like WCOM by checking out a balance sheet and a chart, techie. If you look at WCOM's balance sheet, you can see plain as day that they are insolvent. Don't count goodwill for what it's on the books for, unless you know it's been written down substantially to present market value in the past 6-months. Even then, goodwill is worthless in a Chapter 11 process. You have to look at tangible assets to get a rough idea of the value of the company, and you also have to know whether those assets are on the books at inflated values or have been written down to market value.
WCOM does not pass the test in any of these situations. That "take a penney, give a penney" tray at the convenience store actually has more tangible net worth than the entire WCOM enterprise, IMO. |
