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Strategies & Market Trends : Roger's 1997 Short Picks

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To: hasbeen101 who wrote (4886)8/25/1997 1:08:00 PM
From: nonzeroa   of 9285
 
Damien, the problem is that the only way Mr. Martin can take advantage of the overvalued stock price is by issuing more of it. Like all "pyramid" (pun intended) schemes, the schemes' initial success insures its ultimate collapse. Savvy CEOs created huge empires in the late 60's by issuing high PE stock for cheap assets (it creates the illusion of EPS growth). However, I think investors recognize and discount this effect now. Secondly, the 98 EPS forecasts are so high that 10 Pyramid acquisitions will not help DDIM reach expectations.
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