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Strategies & Market Trends : ahhaha's ahs -- Ignore unavailable to you. Want to Upgrade?

To: ahhaha who wrote (1943)	4/11/2001 2:21:47 PM
From: Ahda	Respond to of 24758

Double bump on head.

To: ahhaha who wrote (1943)	4/11/2001 3:05:35 PM
From: ahhaha	Respond to of 24758

This guy Donald Coxe of Harris Investment Management comes on CNBC and says the optical plays are in the same situation as the oils were in 1980 due to large capital investment leading to over capacity. He's dead wrong. The oils were subject to a 15 years long bear market primarily because OPEC opened the oil floodgates and at the same time, the US government after making promises about deregulation, did something similar to what the liberal dominated powers of California did in 1996. The government fixed the price of oil at the wellhead so that domestic producers had a disincentive to create more supply. The US government didn't do this for environmental concerns. The US government was in the control of the Democrat Party. Their sole purpose was to make sure there wasn't any wealth flowing to the evil oil companies. All part of the war on wealth that the liberals so loudly applaud to this day. So when you hear some institutional investment manager saying anything about anything, you can't trust a word they say. They believe whatever is convenient to support their current prejudices. If other institutions started buying optic companies, Coxe would be selling his touted oils in order to get his lying hands on the opticals before they rose without him. It's also interesting that the oils have a situation akin to 1980 but only in capital investment. OPEC won't pull the rug out like they did in the '80s and the rest of the world can't aggravate the situation like they did then. What Coxe claims about optics is far more true for the oils. There's substantial over investment and there is a declining return on expected investment. The oil companies are where Coxe has his fund's dough. In contrast, the telcom carriers are way under invested in what optics companies provide.