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Technology Stocks : SBS Technologies (SBSE) - Undiscovered gem

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To: Clay Takaya who wrote (727)4/5/1999 9:12:00 PM
From: Christopher Brainard  Read Replies (2) of 1540
 
Clay, your tone has me worried. Hope someday I do not learn that you have thrown in the towel and either bailed completely or worst yet joined the mindless investing in a select group of "50" stocks.

The story behind two LARGE cap stocks my dad owns (lucky guy) tells the story of this whole damn market. The stocks are Monsanto and Solutia. Solutia is the chemical portion of Monsanto that was spun off sometime ago. Monsanto is the sexy (pie in the sky) part of the business. Life sciences and all that kool stuff. Solutia has EARNINGS of something like $2.00 per share. Monsanto is running at a loss, but delivery of results is on tap for 1999-2001 and accelerate growth (Monsanto's law) is promised for 2002 and beyond. So which stock does the market reward, the guy with profits in the bank or the guy with pie in the sky. Oh yes, you guessed it .... Solutia sells for $16 or 8 times earnings and Monsanto .... $46 !!!!

THE RULES OF INVESTING HAVE NOT BEEN REPELLED, THEY ARE JUST BEING IGNORED. 100 years of fundamentals are not wrong.

But I agree, waiting for the rules to return to normal really bites!

Hang in there, our time will come ... in the mean time go out and enjoy the spring time weather!!

Chris ...
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