I think there way too many hypes out there to short,but when the crash comes and everybody is looking for companies with assets,and real p/e's,AOL would be first on my list.They have some of the worst service in the industry,they worth 3 times General Motors,or 10 times Cat,they have almost no assets,and I dont think they have any more potential growth as everybody thinks so.The only reason the have a positive P/E is because they invest their cash on their stock,if it makes any sence,so if their stock stops going up,they will start losing money again.It is an accounting trick to confuge the books,Lucent has been using that trick for years.If AOL goes under,their assets will only pay .0001 for each share you hold.As far as AMZN,at the existing Market cap,they will have to sell every book that gets sold in the world today to justify it,which it will never happen.Overall I think the market is holding up well because of politics,once Clinton is out and the next administration dont keep up with the market,it will crash in no time. The corporate earnings have stop growing for a while now,which means normally Greenspan should have raise the interest rates,in other words he would crash the market,because now everybody can sell fast enough on line, this time they will all sell at once.
So there is still time to make money both ways,short or long.IMO |
