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To: Glenda King who wrote (70373)	4/17/2001 3:21:28 PM
From: Don Green	Respond to of 93625

O.T. Prudent Bear Fund Mgr: Nasdaq 100 Could Fall To 500 NEW YORK -- Perennial bear David Tice, portfolio manager of the Prudent Bear Fund, gave a doomsday vision of the Nasdaq's future in a CNBC interview Tuesday. Tice, president of David Tice & Associates, said the market is in the midst of a "secular," or longer-term, bear market, after having completed the longest secular bull market in history, lasting from 1982 to 1999. The recent rally, he said, is a result of investors seeking instant gratification and their desire to say the pain is over. "The Nasdaq is overvalued two hundred percent," he said. "The Nasdaq 100 could easily fall to 500. The top 20 companies in the index 100 are still selling at 11 times sales and 10-25 times earnings," said Tice. He was pessimistic about the future of these companies, whose stocks are dramatically overvalued due to declining earnings. Tice added that "business is collapsing," and the Nasdaq 100 is likely to lose two-thirds of its value. The Prudent Bear Fund was up 7% at its last valuation on April 12. Tice said he is 70% short on the fund, mainly in technology issues, and long on others such as mining companies. Admittedly, Tice said he turned cautious too early. He blamed his seemingly eternal bearishness on Federal Reserve Chairman Alan Greenspan's 1996 speech about the market's "irrational exuberance." "We were being rational," he said.