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To: oldirtybastard who wrote (108934)	6/15/2001 1:11:37 AM
From: mishedlo	Respond to of 436258

people have just gotten really dumb. My buddy just finished his first year of MBA at Stern, he says most people in his class think the market has come down to much better valuations. They have completely disconnected the idea of underlying businesses from the price action of stocks, most of the world has, the combined power of hope, denial, and the popular press can accomplish almost anything it seems, right until the rug gets pulled out from under everyone -g-. But they look so cheap? It is only $15 when it was 150 last year. The obvious answer to prevent further decline (since that only works once or twice) is to announce a 4/1 stock split on every company next week. After all who can not afford to pay $1-5 for some of the "best" companies America has to offer. Who would not jump at the chance to get in on these 4-1 splits? Everyone is concentrating on share price not market cap vs real growth vs real earnings. M

To: oldirtybastard who wrote (108934)	6/15/2001 1:15:50 AM
From: JRI	Respond to of 436258

ODB- The great thing about most tech. companies is the fact that if one does become king of the mountain (in their little world), and starts generating significant cash flow...guess what? They have to use that cash flow (lots of it) to defend themselves from attack....launch themselves into some new area of tech (in which they likely have little or no expertise....and at which failure can be high), etc. The better tech companies can go thru several of these cycles...but eventually, they are going to fail on conquering an area (likely a big one...the stakes keep getting bigger and bigger), and then they start burning their cash until kingdom come (or they get bought, and likely killed by some nit-wit competitors that doesn't do integrations well- who does?).. So, my question to you: How much is such a company (we are talking most tech here) EVER worth? I mean, the shareholders never get a cash return...its always plowed back into the biz (until that cash is gone).....MSFT seems to be on an island by themselves, but even Softie is counting on some areas in which it is entirely unclear whether they'll ever be competitive, let alone lead. Shouldn't tech perenially be (all things being equal) discounted for this phenomena? And I'm not even bringing up obsolescence risk, etc... Best analogy I heard: Tech is more like the airline industry than anything else. Ouch! So where are the airline-like valuations?