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

To: pater tenebrarum who wrote (68821)	10/8/1999 8:58:00 AM
From: Les H	Read Replies (2) \| Respond to of 132070

Semiconductor stock cut down 70 points in two days; Two major customers (ASND/LU and Quantum) cut orders biz.yahoo.com One of the old red-hots, down 110 points in three weeks.

To: pater tenebrarum who wrote (68821)	10/9/1999 5:10:00 PM
From: Les H	Read Replies (4) \| Respond to of 132070

From Barron's re: GE earnings and pension Abelson cites a stock analyst that has taken a closer look at blue-chip, GE, which has been reporting 13% earnings growth. He notes that 8% of that growth has been due to excess income generated from GE's pension plan. The plan has generated income in excess of obligations, and the additional income has propped up GE's reported earnings. The earnings are legit from an accounting perspective but obviously aren't giving an accurate reading on what's going on with GE's operations. What we have here, is a sort of corporate "wealth effect". Still, the disconnect is that at a P/E of 40, obviously the market is paying a premium for GE's perceived earnings growth. If one were to ratchet that growth down 5%, and use the Dow stocks as a benchmark, then GE is trading at least 50% above a fair (relative) value. That may be true, but Abelson forgets to note that the other Dow companies are using similar tricks in reporting their earnings as well. >>>Posted link to rest of Barron's summary on MDA thread