This is the first issue of Bulll Market
where straight shooting is like grand jury testimony
1. Liquidity_ plenty of cash and more coming in, this market is
a pig getting fed morning noon and night. We think we've found
the problem. The new $ 20 and $ 50 dollar bills being included with
every box of cracker jacks are not having their old money
replacements being taken out of circulation. We tried it yesterday,
just go to your bank and give them an old twenty, they'll give you a
new twenty and ask you to "get rid of it" by spending it at the local mall.
2. Interest rates_ supportive, Greenspan's wife insists they move to a
bigger house. His views are mansion positive. His much talked about
briefcase carried to Fed meetings actually holds architects' drawings, travel brochures and a signed photo from Wayne Angel who's starting his own made for Wallstreet, TV sitcom where he spiritually hovers over bankrupt derivative trading cartels in Greenwich Connecticut.
3. Valuations_ who cares, S&P is only 27 times next years earnings, lots of room. Lets think Japanese, they showed how to blow a real bubble.. how about a 100 pe!
4. Leadership_ when it comes to quality leadership you just can't beat
internet stocks. There's little doubt that someday they will have incredible earnings, being able to turn straw into gold. We've added ESB (excessive strong buy) ratings on EBAY, YHOO, AMZN, INKT, AOL...
these stocks are grossly undervalued on a pre-split basis.
5. Splits_ here's where the Dow gets its power from. If you buy now
you can get twice as many shares. Our favorite split candidates include IBM at 160 and YHOO, AOL, virtually any internet stock at 200. The nice thing about splits is that if your stock drops from 30 to 15 its only a 15 point loss, but if your stock dropped from 200 to 100 that's a 100 point loss... much worse.
6. Foreign market_ one can't over emphasize the potential here. These
once proud free markets, with brand new electronic displays well
dressed staff throwing paper airplanes across the room are on the
rise again. They've realized, like wall street has, that they won't be shot at dawn for stealing so long as its done in a "free market" atmosphere. The Batista Marcos Old World Growth Fund is our favorite.
7. Tip of the Day_ what would a newsletter be without one! GOOYx,
a biotech, is our back room quant's pick. There are rumors they are in the early stages of planning to announce primordial matter. Our source is Reggie at Sandia Labs recycling center.
Good trading, Jim
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