Hi Stephan;
>>>....BCMS the area around 44. Well, we're there now but the stock fell like a rock the last two days. Do you think they might disappoint earningswise and someone is in the know and sells?
No. It is much simpler than that. It is the Crash of Titans.
It must be when Sam Donaldson on ABC's "This Week with Sam Donaldson and Cokie Roberts" program says, " Sell everything"!
A few years ago, one hot buzz word on WS with respect to hardware vendors was "infrastructure". So and so is building xyz "infrastructure". A couple of years ago, WS learnt how to spell "enterprise". "Enterprise" was hot and you would hear hardware and software companies developing products and divisions with the name "enterprise" included.
Nowadays, "enterprise" is a taboo word. Since PSFT's downgrade & fear of slow down in the ERP land, they have taken down all sw companies. Look at the names like bmcs,cpwr,psft,baanf,jdec,sap,catp,kea,.... They are selling companies with thousands of brilliant software developers who develop complicated applications that is changing the way we process and access info. at work. Instead, they are keeping companies like yhoo with a couple of hundred employees that know how to market their name on the www. Guess what the hot buzz word on the Street is there days!
As Harry was saying, the individual investor is spooked. As cluelessly as they were buying a few months ago and causing the markets to overshoot, they are selling now. It is really that simple. It has much less to do with fundamentals and much more to do with psychology.
Clint |
