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Strategies & Market Trends : Heinz Blasnik- Views You Can Use

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To: GraceZ who wrote (227)4/18/2003 12:32:52 PM
From: Don Lloyd  Read Replies (1) of 4907
 
Grace,

Corporate earnings are under tremendous pressure, some old line companies will not survive. You look at the dinosaurs on the NYSE with their loads of debt, declining margins and in a low growth environment it's just a matter of time before they disappear. Until we see some real changes in corporate taxes you can expect corporations to continue to fail on a regular basis.

This should always be a normal and healthy expectation, independent of taxes. No industry can remain profitable if every new entrant over time survives to just squat on potential profits. The laggards must be culled, not subsidized, and consolidation must certainly not be blocked by anti-trust fairy tales.

Regards, Don
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