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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: ynot who wrote (62904)	9/23/1999 6:44:00 PM
From: puborectalis	Read Replies (1) \| Respond to of 120523

Despicable.....Microsoft: Tech Stocks 'Overvalued' By MARTHA MENDOZA AP Business Writer SEATTLE (AP) - The president of Microsoft Corp. (Nasdaq:MSFT - news) warned Thursday that technology stocks are overvalued, including those of his own company, in public remarks that helped accelerate a sharp selloff on Wall Street. The Nasdaq composite index, which is dominated by technology bellwethers such as Microsoft and Dell Computer fell 108.33 to 2,749.83, its fourth-biggest decline ever. Microsoft shares fell $4.871/2 to $91.183/4 while Dell fell $3.061/4 to $43. Microsoft president Steven Ballmer was speaking during a question and answer session at a conference of the Society of American Business Editors and Writers. When asked what story business writers are not covering these days, Ballmer said he doesn't think there's much emphasis on writing about the overvaluation of tech stocks in general. ''There is such an overvaluation of tech stocks that it's absurd,'' he said. ''I would put our company and I would put most companies in that category,'' Ballmer blamed a ''gold rush'' mentality for the stock rises, saying that the profits being earned by the tech companies don't justify the high prices. ''It's bad for the long-term health of the economy,'' he said. Ballmer explained that since many technology companies pay their employees with stock options, the industry is essentially delegating employee compensation to Wall Street. Any major market decline could render those options worthless, substantially cutting the income of tech sector workers. Despite Ballmer's strong remarks, his company moved on Thursday to exploit the market's high prices. It announced plans for an initial public offering for its Expedia travel reservations site, a move that will give investors the opportunity to focus on just one aspect of the company's business and bring in as much as $75 million. The Expedia stock offering is the latest in a series of maneuvers Microsoft has made recently to help its more promising online ventures flourish. Ballmer's comments echoed those of Internet analyst Lise Buyer of Credit Suisse First Boston, who told the writers that tech companies' stock prices are generally overvalued. Ballmer and other Microsoft officials regularly play down the company's profit expectations amid criticism that the world's most powerful technology company wields too much dominance in the software industry. But as the No. 2 Microsoft executive behind chairman Bill Gates, Ballmer's public statements are closely watched by Wall Street for signs of where the technology business is headed. Still, a Microsoft spokeswoman downplayed Ballmer's remarks. ''There's nothing new here,'' said the spokeswoman, Caroline Boren. ''Microsoft has always been cautious in its outlook.''

To: ynot who wrote (62904)	9/23/1999 7:02:00 PM
From: SMALL FRY	Read Replies (2) \| Respond to of 120523

Advantage: Traders. If you're a trader and had been paying close attention... this "correction" shouldn't have been that painful... STOPS should have been installed. It's the individual investors (Long termers) that are feeling the pain right now and are still confused and trying to make a decision whether to sell tomorrow or not. So if those talking heads drop a pen or blinks tomorrow, the secondary sell-off may trigger from those LT investors that came home tonight pulling their hair... half of them may even call-in sick in the AM and watch CNBC with phone in hand. How do I know? Been there done that!!! SF

To: ynot who wrote (62904)	9/23/1999 8:49:00 PM
From: Susan G	Respond to of 120523

No, he didn't tank the market himself, it was more than ripe for it for months...but he TRIGGERED the sell off among nervous traders with his comments. The Nasdaq took a dive immediately upon the release of the Bloomberg story, and then CNBC carried it further... by commenting constantly on Ballmers comments. I don't think anyone - even AG should have this power. If the market tanks, let it be from some economic number or a financial catastrophy in another country - NOT from someones casual remark during a luncheon speech.