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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: Shtirlitz who wrote (53935)	6/13/2000 8:01:00 PM
From: American Spirit	Read Replies (1) \| Respond to of 99985

I would agree a few months ago but we just sold off about 30%. There is little air left in any "bubble" and only in the hottest growth stocks which deserve to be high-priced like NOK and QCOM for instance. Take a look around and you'll see lots of big cap tech stocks with PE's in the 20's-30's, even some in their teens like GTE and UIS.Net stocks and small cap techs have been hammered into smithereens. Any company daring to put off profits by investing in roll-out infastructure and lots of R+D like LOR devastated. Stocks like CPQ have no foward-looking value whatsoever priced in yet. IBM has just started to move and has a low PE with enormous cutting edge tech resources. You can be tired of the bull market all you like but I'd say the recent sell-off in May was overdone and investors should be rewarded for being at least a little bit speculative. Look at T at 33. There's another example. Absolutely no value given for the fact it's going to OWN cable-broadband. T is unpopular now which makes it a great buy. Hold it for a year and probably double your money. Why? Because perceptions change and the negatives of today are the positives of tomorrow. I still haven't bought any e-commerce stocks but so far as undervalued tech stocks, I'm there. GTE with a PE of 16. That is a wireless tech stock now. VOD has a PE in the hundreds. GTE is about to be part of VOD and has only begun to rise from the rust-pile. Even traditional industries. As Greenspan said today technology has made productivity faster and more efficient. Computer chips and robots can build cars. Plans can be re-drawn overnight using computer models. And oil prices? Bad news but people I know don't drive around much anymore. Why bother when you can e-mail and call on mobiles and teleconference? I could live almost anywhere and still do my work thanks to technology. I the Naz going to go crazy again? No I tink we've learned our lesson. But we can and will go higher at last to 4300 near term and probably well back above 5000 in the not distant future, maybe by the end of the year. IMHO of course.