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 : The Amateur Traders Corner -- Ignore unavailable to you. Want to Upgrade?

To: Paul Kern who wrote (10943)	6/20/2001 4:23:06 PM
From: $Mogul	Respond to of 19633

With energy prices continuing to plummet today, a few key point are worth reiterating. If energy prices had merely held steady, the previous drag on GDP of roughly one full percentage point that occurred over the past year would be eliminated. That would make GDP feel one full percentage point stronger. With prices dropping decisively, GDP will actually be boosted from current levels and the boost will feel even greater given the removal of the drag. Importantly, both corporate profits and consumer confidence should get a lift from the plunge in energy prices. Gasoline prices in particular, which fell precipitously today by almost 7 cents per gallon and are down almost 40 cents per gallon in just the past few weeks, will be an important source of stimulus to consumer spending and will almost certainly lift consumers' spirits. Think relief. Natural gas prices plummeted as well today, falling 25 cents per million BTU. At $3.75/mmBtu, natural gas futures are currently near a 1-year low. As Greenspan said today, the recent rise in energy costs may not have been a big inflation story but there was big impact on the economy and on corporate profit margins. This will now work in reverse. Wall Street has been distracted too by the gloom from the tech sector to notice this major positive development.

To: Paul Kern who wrote (10943)	6/20/2001 4:23:15 PM
From: Tom Hua	Read Replies (3) \| Respond to of 19633

Paul, started a SS VRTY at 20.2 AH, met estimates but guided next quarter EPS lower by 50% and sequential top line decline. Regards, Tom