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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets!
LRCX 152.90+2.7%10:27 AM EST

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To: Gottfried who wrote (6493)8/6/1998 2:16:00 AM
From: Czechsinthemail  Read Replies (2) of 10921
 
GM,

Often with the small cap bargain stocks, you have the opportunity for higher returns without the extreme overvaluation. They can follow a higher rate of earnings growth and show considerable appreciation without becoming overpriced. They will tend to work best as long term plays, because that allows enough time for the positives to play out. Times like these when their prices get ridiculously oversold are gifts for those with the courage to buy them when they are out of favor and hold them for the big appreciation.

The extreme overvaluation of large cap institutional favorites contributes to a vulnerable market. You may see a fairly long-lasting bubble, because they are favorites of funds and overseas investors. But when they fall, it can be pretty nasty. If we begin to see wholesale fund redemptions, these stocks will be the ones facing that liquidation.

Baird
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