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Pastimes : The Naked Truth - Big Kahuna a Myth -- Ignore unavailable to you. Want to Upgrade?

To: Peter Singleton who wrote (80097)	12/17/1999 12:43:00 PM
From: Mike M2	Read Replies (1) \| Respond to of 86076

Peter, where have you been? I haven't done the detailed analysis to agree with him quantitatively but qualitatively I agree with him that there are many practices going on which mislead the public ( suckers) about the true profitablity of companies especially tech cos. Employee stock options are the worst offender - I blieve you have seen the forbes story with andrew smithers, see also Bank Credit Analyst April 1999 or Barron's interview with BCAs Martin Barnes . Another problem is when all firms cut costs the economy suffers. One firms costs are another firms revenues- economists refer to this as the Fallacy of composition what benefits an individual firm becomes self defeating when every firm does it. The big story behind this bubble that many prefer to ignore is the role of excessive debt and leverage. Thanks for the interesting note when I have more time I will ponder the issues some more . mike ho ho ho