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Strategies & Market Trends : Trend Setters and Range Riders -- Ignore unavailable to you. Want to Upgrade?

To: lee kramer who wrote (13183)	3/1/2002 9:12:17 AM
From: plugger301	Read Replies (2) \| Respond to of 26752

Lee, I am worried about it all!! LOL With regard to business spending, hypothetically we could imagine a time in which businesses would not be willing to risk their capital due to all manner of market concerns. Trim Tabs had a piece on M&A which I think has weight across the board. Relevant snip: "The complete lack of any merger activity - either cash or stock - is now being attributed to a crisis in "accounting" confidence. We disagree. The real reason for no deals is that buyers see no bargains - yet - in the real world. First of all buyers are worried about their own balance sheets and revenues, and not necessarily in that order. If buyers thought they saw a way to buy a $1 for 25¢ they would be buying. The crisis in accounting is nothing more than what usually happens during a bear market. Between 1995 and the start of 2000, using "aggressive" accounting usually paid off in higher stock prices. Those that did not use "smoke and mirrors" to boost perceived earnings had lower stock prices than those that did. Now that there is a shortage of cash and an excess of potential supply of shares, those companies that were aggressive on the upside are reaping the rewards they so justly deserve."