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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Knighty Tin who wrote (67508)	9/10/1999 5:30:00 PM
From: Knighty Tin	Read Replies (3) \| Respond to of 132070

To All, High Tech Strategist Mini Review. As many have mentioned here, this month's issue was a tour de force by Fred Hickey. And, as usual, I am the last person on the planet to receive his copy. What is it? Don't they feed the Pony Express horses in Houston? <g> 1. Totally awesome numerical comparisons of tech stock overvaluations with other periods of time. The one that really knocked my socks off was the fact that The Deep Six (Intel, Microsoft, Dell, Cisco, IBM and Lucent) WENT UP in one day at a dollar sum greater than the total valuation of the 10 largest tech stocks in 1990. And, of course, sales have increased a small fraction of stock price gains since 1990. In other words, this entire bubble is Price to Sales inflation, not a new pair of dimes at all. 2. Fred believes OEMs are frightened by Y2K and are stockpiling components, meaning there will be a huge drought for sales in the near future. Since they are not selling boxes, that panic inventory purchased at high prices could last a while. 3. Needless to say, ridiculous stock valuations while the businesses are about to die don't make much sense. Fred isn't a bull. <g>