David:
I agree with you on Novell's value and potential outlook.
<<IMHO you got it backwards. Yes, there IS a divergence between the big cap high flyers and the smaller caps, but, it is the big caps which will move in line with the smaller ones, not the other way around. (That is not to say some companies will do well - who knows, maybe people will still pay 50 times earnings for MSFT.)>>
I don't know if "I" have it backwards, as if it was that easy to predict the direction of the market the past 3 years, then every smart fund manager in 1995 would have bought only the largest growth market-cap stocks in the S&P500 and beaten the pants off of everyone (e.g. MSFT, INTC, CSCO, GE, LU, and big drug stocks to name a few).
I wouldn't mind seeing the large caps stall, even correct more (come in line with earnings projections), but to say they will move in line with the smaller caps is saying that we've got a 10% more correction to these big names before we hit bottom. Well maybe, and in that case you and Ralph Alcampora would be in agreement. I thing it may be a mixed bag, some large caps drop further while certain small and mid-caps start to rise higher.
Regards,
QuadK |
