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Technology Stocks : LEGATO SYSTEMS LGTO -- Ignore unavailable to you. Want to Upgrade?

To: jhg_in_kc who wrote (790)	2/10/2000 12:54:00 PM
From: Chuzzlewit	Respond to of 1138

Chuzz, are you still worried about a bubble? You bet I am! Regardless of how optimistic a picture you paint of the economy going forward, anybody with some financial acumen knows that for a significant portion of the stock market there is simply no way to justify the price of many stocks. I pointed out the problems with the valuations of companies like CSCO and QCOM (which are fundamentally very sound businesses). Now consider the plethora of dot coms with no earnings. People are buying these companies in the firm belief that the stocks will rise because (insert you own non-financial reason here). But what it all boils down to is a group of people who do not read or understand financial statement. ***** I am a growth investor, but temper my expectations with what I consider to be prudent financial analysis. I picked up on LGTO because I do read and understand financial statements. Similarly CTXS which I saw as a compelling value when it was trading in the 40s this summer (which I am now out of because of valuation). I am comfortable with stocks like these. But when you talk of stocks like CSCO, JDSU, SEBL, QCOM, etc., I can only say bubble. What do you suppose will happen to the price of these stocks when a recession eventually hits? TTFN, CTC