Well, if I got it correct, Paul predicted another Black Monday today. But this time, I agree with him, but his timing is off. Most of the money is on vacation and won't be back until Tuesday (or is it Monday). So there is no one to really sell their shares now.
Unless there is some really good news to offset the deep recession in Asia/Russia and the devaluations of all asset classes there and in Latin America, equities are going to get slammed in September.
It might happen all at once after a weak rally during the first week, or be painful and slow, like the early seventies. In either case, it might be a long six months before small cap values start to lead the way out.
Fortunately for Novell, they are coming off such bad comparison quarters the last two years that they could actually grow their revenues by 10 or 20 percent all the while, then as the world starts to move from recession in mid 99, they could really catch on with rising export sales. But I think a strong domestic showing, could create positive comps alone, making Novell a great recession stock, IMHO. |
