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Strategies & Market Trends : Booms, Busts, and Recoveries -- Ignore unavailable to you. Want to Upgrade?

To: SouthFloridaGuy who wrote (1886)	2/13/2001 6:27:35 AM
From: Baldur Fjvlnisson	Respond to of 74559

Can you see QQQ at $15? """Think NASDAQ P/E is falling with stock prices? Guess again. As the red ink flows ó in a somewhat hidden manner ó the Nasdaq 100 is setting new standards for a price-earnings ratio by a major index. The index is now trading at 811 times the combined earnings of the companies in the index. The surge in the price-earnings ratio means stocks in the Nasdaq 100 are now exceptionally expensive on the basis of the companies' ability to actually make money. The ratio, which had never been above 165 before this year, reflects the fact that many Nasdaq companies are reporting huge losses for 2000, when their financial results are analyzed using generally accepted accounting principles, known as GAAP. That trend has been obscured, however, because many companies adjust the numbers in ways that make profits appear to be rising. "The disparity between the pro-forma headlines that companies emphasize in their news releases and the GAAP numbers has grown enormously over the past month and a half," said Thomas Coleman, the head of research and risk management for Aequilibrium Investments, a London-based money management firm...""" New York Times

To: SouthFloridaGuy who wrote (1886)	2/13/2001 11:23:02 AM
From: TobagoJack	Read Replies (1) \| Respond to of 74559

Hi Stock Operator, do not be such an alarmist, you will scare the kids. All I see in the very illuminating statistical series you have provided is a lot of SUVs that will no doubt hold their intrinsic and hedonistic, but not resale value on the second-hand market. I will be shopping for either an Audi TT roadster or a Bimmer Z8 to give to my 70-year old Cisco owning Bay Area mom so that she can drive to Santa Barbara to visit her sister in style even as CSCO goes cold. Welcome to this thread – the den of bears. We hang out here chewing the fat until we venture forth into the CSCO and such threads when their underlying stock action cools down and debate heats up, and then return after the pillage to get re-energized for the next round of money making. I have so far restricted my bearish activities to writing and buying equity at the moment of maximum panic, only to sell a few days later. I may experimentally short some wounded script should NASDAQ actually gets revived to 3600 (yeh, they may be able to do it). So, yes, I have so far made “honest” money from the melee, and am not as despicable as the short sellers. Chugs, Jay