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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (8663)	9/19/1999 8:23:00 AM
From: w0z	Read Replies (3) \| Respond to of 15132

This discussion brings up an interesting thought that has been in my mind the past year or so and I would like to share it for others' comments. Starting somewhere in the early 90's, index fund investing became the rage (rightfully so since most of the actively managed funds could not beat the index). As more investors began using these funds, the big-cap stocks in them were bid up to incredible levels considering their real growth opportunities. The most striking example of this was KO which is still at 42X trailing earnings after correcting about 35 %over the past year or so! IBM and HWP are both at 31X trailing earnings which is very high considering their growth prospects. Could it be that the growth in index fund investing artificially bid up many of the big cap stocks to the point that the "indices" are overvalued relative to their real growth potential? Could it be that actively managed funds are beginning to beat the index funds because of this? Are the index funds or their component stocks still a wise place to be? There is still plenty of value to be found in this market but IMHO it is not in the large caps that make up many index funds! Instead it is to be found in many of the mid and small cap stocks that have been largely ignored this decade. Maybe their time is coming now that many are recognizing that the component stocks of index funds are in their own bear market. Thoughts?

To: Justa Werkenstiff who wrote (8663)	9/19/1999 10:11:00 AM
From: MrGreenJeans	Read Replies (1) \| Respond to of 15132

Byron Wien / Barron's In this week Barron's Byron Wien strategist at Morgan Stanley states that the market is either getting ready for another move up or is in the process of topping out. He thinks it may be topping out. He goes on to state that seemingly good news such as the core rate of inflation being better than expected did not move the market much which indicates that at best the market is fully valued or at worst is vulnerable to the downside. This seems to me to be consistent with Bob's thoughts in recent weeks. As for me, I will spend today pondering whether to take more profits tomorrow (everyone should have these problems.)

To: Justa Werkenstiff who wrote (8663)	9/20/1999 10:41:00 AM
From: Wally Mastroly	Read Replies (1) \| Respond to of 15132

RESEARCH ALERT-Lehman ups Teradyne's price target: NEW YORK, Sept 20 (Reuters) - Lehman Brothers said it raised on Monday its price and earnings target for Teradyne Inc. (NYSE:TER - news), a manufacturer of automated testing equipment for the electronics industry. -- Its 12-month price target raised to $50 from $42.50. -- Q399 estimate raised to $0.33 per share, from $0.31. -- Q499 EPS raised to $0.45 from $0.42. -- Fiscal year 1999 EPS raised to $1.09 from $1.02. -- Fiscal year 2000 EPS raised to $1.70 from $1.58. -- Robust demand for Teradyne's core product, the catalyst mixed signal tester, which is approximately 45 percent of total company sales, is prompting the company to ship more units than it originally forecast. -- Demand also is ''exceptionally strong'' for the company's Logic tester products, which are approximately 25 percent of total sales, and connection systems, about 20 percent of total sales. biz.yahoo.com