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

To: Freedom Fighter who wrote (74736)	1/28/2000 1:54:00 PM
From: Knighty Tin	Respond to of 132070

Wayne, It is mostly large tech and financial companies that are playing to capital gains as income game. They are mature and many have slow growth. Like most mature companies, they also tend to have positive cash flow with few capital investment opportunities, as there is overcapacity in most of their core businesses. That makes trading a way to smooth earnings results so they maintain the cachet of steady growth in eps. Most firms that have done this in the past have done so with widely diversified portfolios. Intel, IBM, Dell, etc are doing so more in a sector fund setting. That is like betting double on your industry. My feeling is that the core business is already a call option on technology, so the investment portfolio should be mostly in other areas. But these folks are more of the run and gun investment school.