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To: Glenn D. Rudolph who wrote (103688)	5/19/2000 11:18:00 PM
From: Sarmad Y. Hermiz	Read Replies (1) \| Respond to of 164684

>> Who decides what is the wheat and what is the chaff? Glenn, Obviously each person decides for himself (and now that the ladies are not posting, I guess there is no need to add "or herself"). But there is also an objective measure. Lets take a stock that earns $5/sh. pays $2/sh dividend, a P/E of 5 and a book value above the share price. My investment bet is that it will be left standing and prospering regardless of whether the new econ boys buy it or not. It also does not depend for its survival on whether some pimping analyst touts it or not. On the other hand take an idiocy like efax, or ivil or maybe a hundred others. Or maybe an intelligent concept driven up to absurd levels like eeln (in its heyday), yhoo, ebay or even msft or csco. If you owned the whole thing you'd go broke, because it doesn't earn enough to finance the loan you would need to buy it. So the only hope is to palm it off on a greater fool. Well in a down market, the latter category will go down. The question is will they recover ? My investment bet is that the ones who can continue in business regardless of their stock price will recover, and the ones who need a high share price as fuel to sustain their burn rate will be left aside and forgotten. Like mstr or pilt. So about the wheat and chaff. The wheat gives fruit (business profits). The chaff does not. The subject of this thread is like that. I'm sorry if I rambled on too much. I'm sure KIS has explained it better on numerous occasions. Regards, -Sarmad

To: Glenn D. Rudolph who wrote (103688)	5/20/2000 2:53:00 PM
From: GST	Respond to of 164684

Glenn: <who decides> The collective "wisdom" and actions of millions of people - some more influential than others -- they decide, as always. If "nothing has changed" there is nothing to worry about. But things have changed. People are getting burned by their losses and that is knocking down the really reckless, aggressive types. They no longer play as big a role in the decision process. The interest rate environment has also changed. The supply/demand of "new economy stocks" has changed and the broader public is getting scared off. The pros see the writing on the wall -- bear market for the "new economy" and cautious optimism that stocks with earnings and low bankruptcy risk will at least survive if not flourish -- but at lower multiples for ALL stocks and crushing sell-offs in stocks with no earnings to multiply.