Dave,
Merry Christmas to you!! Again, your analysis is right on target.
The problem is a market condition, not a company problem. The fundamentals remain intact. Two items of interest today:
1) From IBD today, Paul Wick, Manager of Seligman Communications and Information Fund; "I think that people are really scared, In addition to fears about Asia and Japan, you have a lot of overcapacity in semiconductors, and that has narrowed profit margins." As long as the Asian crisis doesn't get any worse, these will be solid stocks in the next year. " I think we'll have a humdinger of a rally in technology."
2) From the Chicago Tribune today,Bill Barnhart's column, quoting Marshall Front of Trees Front Associates and the flight of capital to more liquid large cap stocks: "The midcap and small cap stocks that active mutual fund managers prefer have lagged blue chips in the second half of the year. Fifty three percent of Nasdaq stocks have lost 20 percent or more in value since their 1997 peaks, while only 21 percent of the S&P 500 stocks have lost that much. The largest stock stocks-with market capitalizations of more than $20 billion-on average have fallen about 9 percent from their 1997 peaks; the smallest stocks-less than $250 million in market capitalization-have lost 34 percent."
If you don't sell, you don't lose!! Better times will return and now is the time to buy!!
Regards,Henry |
