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

To: John Carragher who wrote (66619)	1/11/2001 6:41:14 PM
From: el paradisio	Read Replies (1) \| Respond to of 99985

The recent layoffs, sales going down in cars,computers, retail ... suggest a slow in the economy and consumers spending...that's how the recession started in Japan... Look at GM,GTW,APPL,HWP,WMT GPS... el

To: John Carragher who wrote (66619)	1/11/2001 6:51:39 PM
From: Doug	Read Replies (1) \| Respond to of 99985

John: I think that is quite true. The problem in the Tech sector is over capacity brought upon by over acquisition. The old Economy Industries expanded by Purchase (cash)and generally reduced overall total capacity and increased productivity. The new Economy Industries expanded by acquiring assets thru Pooling of resources. As the number of shares increased they were unable to reduce capacity of the joint venture as the rev/share would fall drastically. This overcapacity has now to be mopped up. This will be done by downsizing and reduced profits and sales. It is inescapable. The worst affected are those Companies with large number of shares. HWP is a good example. Another example is LU which has decided to break up and reengineer with smaller number of shares. There will be many more. The market has yet to resolve these issues.