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 : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (3746)	4/16/2001 2:22:57 PM
From: Jack of All Trades	Respond to of 33421

If you lived in New England you would have an extra day... I am in the Printed Circuit Business selling Cap Equip 150-$500K/unit and we just had our US show two weeks ago... High demand from customers east of the mississippi, sold nothing in CA, one machine to a Vancuver based Co, and 6 Machines to East Coast Co's with probably 10 more on the hook. Our products work well with smaller lot sizes and higher technology. It appears CA Co's blew their wad last year. I expect some consolidation of businesses between 10-20%. Many mom and pop shops will be unable to keep up with technology putting many long term (lifers) out of work unless they partner or sell to more advanced Co's. JMO

To: MulhollandDrive who wrote (3746)	4/16/2001 3:27:40 PM
From: John Pitera	Read Replies (3) \| Respond to of 33421

I think that the Fed Funds traders have been listening to the FED Gov's who have been talking about a second half rebound and this notion that the economy feels worse than it is. The entire yield curve has been flattening and moving higher, which is bearish. The TYX.X (30 Year bond yield) has moved above it's 200 dma today for the first time since May of last year. Bonds and notes have gotten hammered the last 4 days......they obviously did not like the stock market rally. ----Moody's Investors Service reports that a record number of companies have been downgraded to the junk level (Ba1 and lower) from investment grade (Baa3 and higher) during Q1. 23 companies were downgraded during the quarter, however 11 of them were associated with the California power crisis. For this reason, the data does not suggest that credit quality is as bad as one might think. However, the previous record was 13, and if the 11 California downgrades are discounted, you are still left with 12 downgrades, which is dangerously close to the prior record. Of note, the number of firms upgraded from junk to investment grade was 10, higher than the 12 month average of 6.-------