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To: Eric Wells who wrote (100444)	4/13/2000 6:52:00 PM
From: Bill Harmond	Read Replies (1) \| Respond to of 164684

You are absolutely correct. They are bears, though. In HJ's case I'm not sure what his story is. It changes. >>You and I disagree on many aspects of valuing stock prices. I don't think we do. I think that you and I both know that stock prices discount future cash flows and earnings. Where we disagree is whether they should do that for newer companies without current positive cash flow or earnings...how far the market should look ahead. Speaking only of the top-tier companies now: A month ago the market considered current earnings immaterial, and I still agree with that. Right now, though, there's a "[current] earnings matter" theme in the market which is a reaction. The real cause of this is a liquidity shift back to regular stocks compounded by an oversupply of Internet stock. This will blow over and the leaders will reassert themselves. I bet if you look at their charts in a couple years this episode will appear as a saddle in their charts. Those future cash flows that the market discounted a month ago will still be there.

To: Eric Wells who wrote (100444)	4/13/2000 7:27:00 PM
From: Randy Ellingson	Read Replies (1) \| Respond to of 164684

However, if the market comes down more, you will lose money. That's essentially presuming one sells lower than they bought, and/or sells low then buys back higher. I.e., your "market comes down" scenario would have to be "market comes down and does not return to these levels for a long time". Not to mention the market can come down and certain stocks can rise in spite of that. It will be interesting to see how the leading "Internet" stocks fare from here compared to the market (SP500 or Nasdaq)... Randy