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Strategies & Market Trends : Waiting for the big Kahuna

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To: Bonnie Bear who wrote (23145)8/3/1998 9:57:00 PM
From: Mitchell Jones  Read Replies (1) of 94695
 
>>The next bottom for the russell is down another 20% back to april 97- at that level we will see many bankrupt companies.<<

You seem to imply that a company's stock price determines its viability as a commercial enterprise. As long as a company has strong cash flow and earnings how does its stock price relate? Merger mania might well be affected because companies would no longer use inflated stock as currency;however,cash for growth should still be available if the business is indeed worthy of credit or if earnings are adequate.

What am I missing here?

Mitch

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