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Pastimes : The Justa & Lars Honors Bob Brinker Investment Club -- Ignore unavailable to you. Want to Upgrade?

To: Justa Werkenstiff who wrote (14514)	6/16/2000 8:26:00 AM
From: Wally Mastroly	Read Replies (2) \| Respond to of 15132

Ahead of this mornings new housing starts - Xerox warns..... Xerox Warns 2nd-Quarter Earnings Per Share to Miss Targets By Courtney Schlisserman Stamford, Connecticut, June 16 (Bloomberg) -- Xerox Corp., whose chief executive was ousted last month after a failed reorganization, warned it won't meet second-quarter earnings forecasts because of a shortfall in high-end printing and publishing products sales. The world's biggest copier maker said earnings likely will be in line with the first-quarter level, when the company reported profit from operations of 28 cents a share. Xerox was expected to earn 42 cents a share in the second quarter, the average estimate of analysts polled by First Call/Thomson Financial. In April, Xerox said first-quarter profit fell 41 percent because a sales force reorganization begun last year cut productivity and increased employee turnover. Less than a month later, CEO Richard Thoman was ousted after little more than a year. Xerox shares fell 5/16 to 25 5/16 yesterday and have dropped 57 percent in the past 12 months. They fell 4.10 euros ($3.92) to 22.00 euros in German trading.

To: Justa Werkenstiff who wrote (14514)	6/16/2000 10:41:00 AM
From: Justa Werkenstiff	Read Replies (1) \| Respond to of 15132

Looks like the Justa scenario is entering another phase. Financials are getting clocked again. BKX down another 4.0% and are in free fall. Good news for tech. heads as that rotational move will give some fuel to that sector. But tech. investors should take note because at some time in the future the SOX will do a BKX. I believe the SOX is in a topping pattern. This can last an extended period of time. There is an excellent chance that these stocks will trade higher and could even make new highs. This sector is hard to predict in terms of price. I also believe that even though the business is strong that the market will start to discount a slowdown in the chip sector. The current fundamentals will not matter as the market will look beyond them. One scenario indicative of a change of sentiment is a series of lower highs and lower lows over time in the face of good news. This is the slow bleed. The other scenario is an earnings or outlook miss by a big player. These stocks are priced for super news. One minor negative step means the hammer with a slowing economic background. A failure of this type would take the whole group down immediately. And if the miss is indicative of a trend, they may not go back to their highs anytime soon. If the SOX remains in a topping pattern (looks like this roughly /^^^^^^\ ) in the coming weeks/months I would consider doing some selling and consider selling out totally when Brinker does his dump if you are of the same opinion as he is with respect to the overall market.