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Strategies & Market Trends : John Pitera's Market Laboratory

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To: John Pitera who wrote (7267)11/18/2005 1:00:34 PM
From: Jon Koplik  Read Replies (1) of 33421
 
Re : amount of IPOs, mergers, corporate financing activity, etc. -- what I thought I heard was : the exact reverse of what you are saying.

The amount of issuance or "cashing out" is extremely low lately.

Indicative of : corporations do not want to sell their shares cheap.

Also -- share repurchases are supposedly remarkably high now.

Also -- cash on corporation balance sheets is astoundingly high.

Also -- real taxes paid by corporations to the I.R.S. (as opposed to the tax numbers on reported earnings) are astoundingly high.

For these reasons (plus the fact that U.S. interest rates are at or near this cycle's peak) (despite the idiotic hysterics about worries about 1970s style inflation) ...

My guess is : stocks should be unchanged to up ... for now.

Jon.
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