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To: Zeev Hed who wrote (17616)	12/24/2000 10:14:48 PM
From: puborectalis	Respond to of 60323

A Denver Post survey found that through mid-December, the stock prices of nearly a quarter of 60 Colorado telecommunications and technology companies were down 90 percent or more from their highs. Those 60 companies have lost $184 billion in market value, and the bleeding has accelerated as the year draws to a close. Low stock prices translate into worthless options for executives and hiring freezes and layoffs at some companies. Start-up companies now find the capital markets closed to them long before they can support themselves.

To: Zeev Hed who wrote (17616)	12/25/2000 8:44:48 AM
From: limtex	Respond to of 60323

ZH - The tech expansion, if that is the correct definition, is going to continue. Some companies are going to experience 100% or more growth rates for years ahead. I agree there may be a number of S&P companies that are not in the tech business and are in 'old' industries, and they may well have low P/Es but some tech companies will have super growth and the market will give them a P/E and my guess is that if a company is growing at 100% pa for what could be years ahead then it will get a better P/E than an 'old' economy company that is growing intermittently at 10% pa and achieving increaesed profitablility by cutting costs, downsizing etc. I am not referring to the more aggressive ipo's for companies that didn't have lets say very easily profitable business plans. No I am referring to companies like SNDK and QCOM. They are profitable today even though obviously they weren't always but the bus plans were credible at least to me they were. Their markets were understandable and there are and will be others like them. Other postsers here may want to give their favorites. But SNDK looks set to grow for years and its markets are increasing in width and depth, it is profitbable and it has no debt. Its stock price goes up and down like a yoyo and has no strength but I attribute that to its being concieved to be in the semi-conductor industry and it is still a small company. A couple of years ago the stock fell to about $6 when it had over $6 per share in cash! It reached a high thisyear of over $160 and no it has fallen to $32. All the time the company has got stronger and stronger. I mention this about SNDK because there are plenty of other companies that others follow that have the same fundamentals and prospects. Those are the companies that will cammand higher P/Es. The Great Clinton/Gore crash of this year was caused by over tightening because despite his oft times denial my guess is that he deliberately targeted the NAZ and whe was dogged in his pursuit unitl he finally broke it. Now of course March this year etc was not normal. On the other hand you and I weren't in charge of the Fed when that spike occured, Mr Greenspan was. He either realized that the 1999 interest rates would cause the March spike or he didn't. You tell me. Either way I think it is quite a demonstration that he didn't have the faintest idea what was going on. And now that the oil price has subsided why was it that the economy couldn't continue to grow at just under 5%. Why did the brakes have to be put on in such a way that the economy has gone from +5% to probably -1.5% in two qtrs? Why isn't +4% good? or 3.9% if you like? Mr Greenspan is in the driving seat and has been all through. 6.5% interest rates with inflation at very low levels is clearly too high. Why did it need that much? My view is that he was trying to break the NAZ spirit. And he has achieved his aim. In the process the World economy has come to a dramatic and sudden stop in the last few weeks. The rolling effects of that are going to be felt in US companies for quite a few qtrs ahead. And why all because of his obsession with the NAZ. I have gone on for a bit because I wanted to put the 'normal' in perpsective as the great tech expansion was artificially interupted and will resume again. Best regards, L