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Strategies & Market Trends : Sharck Soup -- Ignore unavailable to you. Want to Upgrade?

To: velociraptor_ who wrote (30723)	7/12/2001 1:31:22 AM
From: Johnny_Blaze_420	Respond to of 37746

i agree velo... i know what is going on behind the scenes...but wall street loves to play games... mer's rule change was absolutely a joke...very comparable to microsoft's concession... i am not a msft buyer...i like smaller stocks... but there are lots of funds out there who are buyers and their reasons are sure msft has a loss from investments...everyone who invested over the last 1-2 yrs has a loss on their investment...the assumption is that those charges will decrease while revenues are increasing so 1, 2, 3q's from now eps will increase too... add in decreasing energy costs...etc...and the potential is there... doesn't mean that things can't turn the other way with debt levels so out of control...retail sales and home stats will be interesting to watch to gauge the consumer... but as mish5k pointed out, psychology runs the market, and if the perception is that things are improving, even it is q4-q1 instead of q3-q4 then people will take it... it is very interesting to watch how delicate the recovery is in the psychological plan. second half is almost dead so we discounted that, now we are pricing in q4-q1, if that goes do we sell back to 1950, or go lower, if so how much?? 1850 or a retest... that would probably depend on if the recovery is q1-q2 02, or q2 02 and beyond... time will tell...i'll be trading both ways as that is the only way to make money right now.

To: velociraptor_ who wrote (30723)	7/12/2001 8:00:29 AM
From: Wes Stevens	Read Replies (1) \| Respond to of 37746

Velo they made their operating money in the quarter. What they lost was on investments. They have for years had the problem of too much money in the bank. What do you do with it? If your stock is low in price you buy it back. They thought it was better to invest in new companies. Wrong decision. But the bottom line is they still made money. A one time write off is always ignored unless bad decisions get to be a habit. The write off is done and they get the tax break from it. Going forward is the key.