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Technology Stocks : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: techtonicbull who wrote (42980)	4/22/2000 5:16:00 PM
From: johnd	Read Replies (3) \| Respond to of 74651

What you say is Punish is what msft wants. they will thank you much.

To: techtonicbull who wrote (42980)	4/22/2000 7:11:00 PM
From: James F. Hopkins	Respond to of 74651

T; You can't lump em, but then too they shouldn't be looked at as separate entities that are not effected by what happens to their cousin , even if they want to disown him SUNW, ORCL , IBM and others ( at least their "stock price") will be impacted.. In part here's how that works.."pension funds".. With MSFTs' fall from grace about half of the 200Billion or so that was cut out of her market cap causes a short fall in pension fund reserve's; This takes time to work it's way through the pipe line but it eventually hits and will over ride even stellar earnings. And people will say WHY did so and so sell off on such good earnings..they never thought it could be because of a liquid shortage in retirement funds..and that's another thing that's kept as dirty little wall street secret as none of the managers want to look foolish. Pension funds are very complex, and most trade in an after market..and are also used as collateral to borrow on..( and if that so called reserve which is tied to some index drops to a certain level then the loans are called or some one has to sell something to come up with more money. ------------------ You have heard about margin calls on day traders..well let me tell you almost every thing in this market is on one form of margin or another ( not the up front broker margin ) but after market debt that is at all time highs. Even many Banks can now use "stock" to meet the "reserve limits " set by the banking committee.. It was "pushed" through about a year ago..and it's subject to cause a lot of failures in the future..same crap Japan did back in the 80s when it was flying high.. ------------------- So earnings and court rulings aside..because of how the mechanics of the market ( mutual funds index funds and "pension funds" are tied into the market you can't kill a stock as big as MSFT without creating a lot of "technical" ? ( not sure that's the right word to use ) pressure on it's relatives.. it's the way the system ( and debt ) is all tied together. --------------------- MSFT was the largest "market cap" stock in the entire world..so large that it made the three largest oil monopolies put together look like peanuts. That huge market cap was marked to market by a lot of "funds" as reserves..when the results do work their way through the pipe line ( after a lot of twisting and turning) you will see just how serious a problem it is to take down the biggest company in the world.. ----------------------- When the leader falls this much believe me there is hell to pay. Don't expect the scum bags that hyped all this new age, new economy pipe dream to ever admit it until they have unwound and got out. Jim