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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED -- Ignore unavailable to you. Want to Upgrade?

To: Jim Willie CB who wrote (49571)	4/5/2002 1:03:43 PM
From: Sully-	Read Replies (3) \| Respond to of 65232

The great bubble transfer By Bambi Francisco, CBS.MarketWatch.com Last Update: 10:38 AM ET April 5, 2002 SAN FRANCISCO (CBS.MW) -- Around this time two years ago, the economy had been the best in generations and the Nasdaq was over 5,000. That was until the bubble burst. Was all the wealth lost? Someone who held Yahoo shares at $200 (YHOO: news, chart, profile), AOL Time Warner (AOL: news, chart, profile) at $70-plus or EBay (EBAY: news, chart, profile) at $121 might be nodding his head. But not all was lost. The wealth shifted away from tech/Internet and stocks in general to real estate, according to Stephanie Pomboy of MacroMavens, who, at the end of February, left reputable research firm ISI to start her own research outfit. Pomboy writes: "The $3 trillion in wealth that was so abruptly lopped of the top of the Wilshire since its peak in March 2000 has resurfaced in the real estate market." Homeowners have seen the value of their homes appreciate $2 trillion to $3 trillion over the same timeframe. Unfortunately, the home might be the new margin account as consumers leverage against unrealized gains, she said. She points out that the average cash-out refinance is $34,000. Yet the median home price is just $150,000. This means Joe Smith is extracting 20 percent of his home value. The numbers reveal a "speculative fervor that makes the Nasdaq mania look tame," Pomboy said. Earnings and other tidbits Next week, Research In Motion (RIMM: news, chart, profile), the maker of the popular handheld Blackberry, is expected to release fourth-quarter results on April 9. The company is expected to lose 15 cents per share on sales of $66.5 million. Rimm is expected to generate $295.5 million for the full year 2002 and $441 million in 2003. The company is expected to post a loss of 13 cents per share for all of 2002 and a loss of 14 cents for 2003. Yahoo is also slated to report next Wednesday. The Sunnyvale, Calif.-company is expected to earn 2 cents per share on sales of $173 million. In the same period a year ago, Yahoo earned 1 cent on revenue of $180 million. In 2001, Yahoo generated $717 million in sales. That's supposed to grow to $796 million this year. On the bottom line, Yahoo is expected to increase earnings to 10 cents from 7 cents last year. DoubleClick (DCLK: news, chart, profile) reports its first-quarter results on Thursday after the close of market. The advertising specialist is expected to lose 4 cents on sales of $84.24 million. This compares to a loss of 8 cents in the same period a year ago on sales of $114 million. In 2001, DoubleClick generated $405 million in sales. That's supposed to fall to $368.9 million. Where are they now? Every Friday, this column will take a look at former movers and shakers during the tech boom. Who would you like to read about? E-mail: bfrancisco@marketwatch.com Free delivery Get free delivery of Bambi Francisco's Net Stocks daily. Sign up for Bambi Francisco's Net Stocks e-mail newsletter at CBS.MarketWatch.com. Also available: Bambi Francisco's Net Sense weekly commentary. Click here to subscribe. Click here to read the latest Net Sense column: Prepare for earnings season: Get out the grills. Bambi Francisco is Internet editor of CBS.MarketWatch.com, based in San Francisco. cbs.marketwatch.com