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

To: Jorj X Mckie who wrote (5630)	2/18/2002 4:00:17 PM
From: John Pitera	Respond to of 33421

Hi Jorj, I posted those after we talked yesterday. The biggest impact would be the dilution of earnings that would occur. You can watch CNBC, CNN, etc. and have 5 different people in an hour tell you about the quality of earnings, pro-forma earnings and how EPS numbers are artificially inflated. This is a mass psychology development, that was near impossible to predict last summer when Fortune wrote their article. Earnings technology stocks have been overstated 20 to 50% overstated. In some cases even more. As "Adam Smith" (aka George Goodman) wrote so brilliantly in the "Money Game" when the music stopped in the late 1960's and early 1970's everyone ran to a seat and found their were not enough of them. It's a parable of what we're seeing today. The seat today, is mostly likely to shift out of the asset class of equity. Or at least technology stocks. I believe that current sentiment will make the passage of such regs to be pretty much a fete accompli. I think you're very likely right.