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Technology Stocks : Red Hat Software Inc. (Nasdq-RHAT) -- Ignore unavailable to you. Want to Upgrade?

To: Doug B. who wrote (749)	8/23/1999 3:27:00 AM
From: Nelson Chang	Respond to of 1794

I love and hate this guy. But when he talks (and he talks a lot), I find it worth my while to listen. It should be obvious to traders who this is. If you don't know, you probably aren't as big a trader as you think. >>>Consequently, the biggest money is made buying the riskiest stocks with the least conviction and the hottest fundamentals now but the coldest a year from now. (That's usually how long it takes for someone else to figure out these businesses and destroy the margins of the players.) Berko also knows that to short these stocks is to take your life into your own hands. Shorting on valuation is the dumbest thing possible. There have been whole contingents of money managers who haven't given a darn about valuation since 1990. You tend to find them in the top echelon of managers every couple of years, right before they lose you 20% in a heartbeat during a period when they can't keep these stocks up any longer, or the fundamentals turn south. Right now these momentum funds are reigning supreme. You short their stocks, they take you apart. Period. End of story. <<<