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Technology Stocks : LSI Corporation
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To: Hightechhooper who wrote (13008)6/12/1998 8:02:00 PM
From: RFF  Read Replies (1) of 25814
 
The downside in this market is not over yet.

The NAZ and tech stocks have had a good correction and there are some values now, but the DOW is still way over priced.

The DOW is only off 4% from its all time high. These huge companies trading at 40-50 PEs is insane - even with these low interest rates.

Most of these large companies will see big softness in their export markets - latin american currencies are starting to slip as well. With the dollar so strong foreign customer are going to slow buying - and what they do buy will convert back into fewer dollars.

Plus all these nations will flood our market with cheap products - look for more compression of profit margins over the next few months.

Depending on what is said over the weekend, we might see some follow through to the rally from Friday, but it won't last. With 4 or 5 earnings warnings every night, I think at best people will just wait on the sidelines to see what pans out. I also think its inevitable that we'll get a warning from one of the big tech stock - then we'll see more downside .

The rally today was all driven buy traders and computer programs. Several people said there was very little institutional money actually buying.

Just a couple thoughts........Sorry to be so pessimistic.....
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