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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (17934)	3/27/2000 2:29:00 PM
From: Daniel	Read Replies (1) \| Respond to of 18016

> Bill: If you were selling your car and your Son was buying > a car what would be your nett expectation.? > The stock market needs to accommodate both generations. > Short term greed can be very damaging in the long run. I thought his point was that you seemed to be missing the obvious difference: Other things have value (what they can used for) other than just their resale value, so buyers like lower prices (to get the same value for a lower cost). Lower prices don't decrease the value. Stocks have no value other than their expected potential future resale value. Lower prices do reduce the current known* value, and therefore can reduce the expected future value (making the potential future value less sure). [ignoring dividends and acquiring partial control of a company] Therefore it's no surprise that low stock prices don't yield the same positive reaction as low consumer goods prices. I guess the real issue is how much to think the current known price indicates something about the expected future value. (I'm using "expect" in the statistical sense: what you can expect on average*; not specific predictions.) Daniel )