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To: patron_anejo_por_favor who wrote (9838)	8/9/2000 7:02:18 PM
From: patron_anejo_por_favor	Respond to of 436258

Since Fleck is out of town, here's a repost of the Mania Chronicles from 3/17. Enjoy! In the mania chronicles...Here's one from a regular reader: "I know this guy, he's a police officer, that recently got into the stock market about six months ago. Nothing unusual there. What's odd is one of the ways he picks the companies that he invests in. "When he's hanging out at Starbucks, he'll grab one of the papers that someone's already read (the fiscal responsibility pretty much ends there) and look for the stocks whose symbols are accented in bold print. If they're in bold print, then they have to have a good marketing department, he says. He recently found and invested in TALK.com (Nasdaq: TALK) this way. Said he had no clue what they do, but that everyone has to talk so it has to be good. I could go on, but I don't think it will top that, so I'll just stop right there." And here's another one from a reader that puts a new spin on the idea of what constitutes personal injury... "My roommate referred his girlfriend to me for financial advice. She started off explaining to me how she'd hurt her back and had a choice of accepting a $10k settlement or holding out for more in case she needed surgery in the future. I started to tell her I knew a personal injury lawyer who could... but she corrected me and asked - `Should I take that $10k and buy a stock?' She continued, `My girlfriend said just to take the money and buy a stock.' I realized just how pervasive this mania has become. "I tried to explain that the market could not be expected to be so kind as it has seemed to be over the last year, nay five, nay 10 years; that historical averages of equity returns were below 20 percent; that one of the great companies can open up the next day 35 percent lower in value (PG); and that there are other financial instruments like bonds. She didn't want to hear this and I lost her attention. So I asked: `Do you owe anything on your credit card?' "Yes, of course, at 20-percent interest. What else could I advise her, but that she should use the cash to pay off her credit card. Then she began with the `yeah, but isn't this just a time when the markets are, you know, so growing.' I tried to explain price multiples and how the `growth' was really a growth in the perceived value of equities. "She let out an 'ugh' of exasperation. I could see that she only wanted that hot tip. I really can't blame her when I see the Ameritrade commercials and mutual fund ads. The sad part is that these people will get left holding the bag when Goldman and Merrill decide the party's over."

To: patron_anejo_por_favor who wrote (9838)	8/9/2000 7:13:43 PM
From: Ilaine	Read Replies (1) \| Respond to of 436258

I've been following Ricochet for a while, as a product, not as an investment. Just took a closer look, WCOM owns 38% of MCOM, Paul Allen owns 49%. They are presently building out the necessary infrastructure in a couple dozen metro areas, and they aren't making any money right now. But the technology seems to work. I don't know if I'd short any wireless internet stocks right now, but some of these stocks swing so wildly that I've been thinking about puts. But MCOM is already down a lot, from around 110 to around 35, and doesn't show signs of going much lower. So not only is the guy foolish for the home equity loan, his timing sux.<g>