Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Gofer who wrote (1910)	2/15/2001 6:06:07 PM
From: TobagoJack	Read Replies (2) \| Respond to of 74559

The utter lack of cause and effect relationship between what is happening in the economy and the financial market place may continue for a while, with Nasdaq going flame-out at 3,600, then plunging downward again to 2,500. This next plunge with see many current burger fodder press the ejection button, only to see themselves bop in the oil spill, made into burgers at altitude 1,400 or below. The "give back" after manic action can be around 5 years of gains, or 100% of the gain since take-off, and the average return of the share market should be around 10-12% per annum. However one counts it, Nasdaq can easily go to 1,400 and even below. If the economy is the market and the market has become the economy, it is best that we prepare for the possibilities. My general direction over the next 12 months is to work my liquid assets thus ... (a) sell puts on resource stocks and hold resulting equity if putted (tree growth, fuel deposits, gold, platinum) decisively, but after research on the former two items; (b) move $ to Euro slowly; (c) move from longer to short duration bonds at speed. Basically to staggered risk-free strips ala cash and maybe some inflation protected TIPS; and (d) Buy emerging market equities, but very slowly as there will be splash damage on already beaten down banana republic equities. I am suspicious that the maestro will, is willing to and wants to, do anything to support the market/economy at the cost of the dollar, inflation, and turning the US into a banana republic look-alike where the returns may well trail the near dead emerging markets (China, Peru, Philippines, Indonesia ... need to research again, widely diversify across geography, focusing on only the strongest companies providing essential services and/or controlling essential resources). I know this sounds crazy in view of the US performance over the past 10 years and I may therefore may be making this journey alone, away from the crowds. I welcome discussion along anything resembling the above indicated direction (not in accordance with any CNBC map). Chugs, Jay

To: Gofer who wrote (1910)	2/15/2001 9:53:00 PM
From: Rolla Coasta	Respond to of 74559

Risky deal.... dailynews.yahoo.com Thursday February 15 5:27 PM ET Priceline.com Gets $50 Million From Asian Companies NORWALK, Conn. (Reuters) - Asian conglomerate Hutchison Whampoa Ltd. and Cheung Kong Ltd. said on Thursday they invested a total of $50 million in Priceline.com Inc., (NasdaqNM:PCLN - news) which allows people to name their own prices for airline tickets, mortgages and telephone service. Hutchison (0013.HK) and Cheung Kong (0001.HK) said in a statement that the investment was in the form of a purchase of 24 million shares of the U.S.-based company's stock at $2.10 a share. Priceline.com closed its WebHouse Club gasoline and groceries affiliate in October and has been hit by departures of top executives, falling sales of airline tickets and by bad publicity over complaints about its service. In December, it cut its staff 11 percent and indefinitely postponed entry into new lines of business. Hutchison and Cheung Kong also said they agreed to buy 11.3 million shares of the Norwalk, Conn.-based online company from founder Jay Walker for about $24 million. The Asian companies received certain registration rights from the company as part of their pact and Hutchison will receive a seat on Priceline.com's board. Hutchison also raised its stake in Hutchison-Priceline Ltd., the companies' Asia venture, to 65 percent, buying $9.5 million worth of convertible notes in the venture. Shares of Priceline, which traded as high as $104 last March 14, rose 17 percent Thursday to close at $3 before the news and its fourth-quarter results. The Internet company said its fourth quarter loss widened to $25 million, or 15 cents a share, compared with a loss of $10 million, or 6 cents a share. Wall Street analysts on average were expecting a loss of 7 cents a share, according to First Call/Thomson Financial. Revenues rose 35 percent to $228.2 from a year-earlier, missing Wall Street's consensus estimates of $299.75 million, according to First Call/Thomson Financial.