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Technology Stocks : FSII - The Worst is Over?

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To: Kent Sarikaya who wrote (2055)7/2/1998 2:03:00 PM
From: Joe Dancy  Read Replies (1) of 2754
 
I won't argue that many large caps and internet stocks are overvalued - mainly the institutional cowboys have driven those prices above intrinsic value in many cases IMO.

Small caps are as undervalued as they ever have been with regard to larger cap stocks Kent. If large stuff corrects I'm sure the smaller stuff will follow in tow.

Then again how bad can small caps get hit in this sector when they already sell at or below book value as Don points out. Things can only get so bad, then a company will be bought, sold, or taken private.

Get a load of some of the statements here on small caps:

usatoday.com

The best is " Since the end of 1994, the Russell 2000 trails the S&P 500's growth by 80 percentage points. And it's only gotten worse this year. "

I'm either stupid, stubborn, or a combination - but I think this is a real opportunity to buy some real good small companies in some of the best industry segments in the world - at prices well below intrinsic value. FSII fits in that mold IMO.

Joe
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