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To: Lizzie Tudor who wrote (71772)8/4/1999 12:53:00 PM
From: GST  Respond to of 164684
 
Michelle -- nets are the most interest rate sensitive of all stocks because their profits are the furthest away in time and the change in interest rates is amplified by valuation models that discount future earnings by using a risk free rate to compute present value of future earning (expected earnings). Combined with insane valuation levels they are being crushed by the interest rate trend.