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Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem

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To: Christopher Brainard who wrote (660)9/15/1998 11:32:00 AM
From: Mark Brophy  Read Replies (1) of 1540
 
There's a precedent.

Check out Stocks for the Long Run by Jeremy Siegel at your local Barnes and Noble. There's a chart on page 94 comparing the S&P 500 to small stocks since 1925.

The cumulative total return on small stocks...did not overtake large stocks once between 1926 and 1959....But between 1975 and the end of 1983, small stocks exploded. During those years, small stocks averaged a 35.3% compounded annual return, more than double the 15.7% return on large stocks.

IBM and Intel were grossly undervalued 4 years ago and deserved to rise. Today, they're grossly overvalued. The market seems to have a tendency to overshoot. It'll probably happen again when small stocks get some momentum.
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