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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: Softechie who wrote (93903)	7/12/2002 12:03:20 PM
From: AD	Respond to of 99280

thanks , good articles Softechie. 10:45 ET Biosite started with a Sell/Sell Short rating at Sterling -- target $11 (BSTE) 21.24 -1.65: Stock falling in reaction to Sterling Research initial SELL/SELL SHORT rating and price target of $11. Expects co's fastest growing product, Triage BNP (40% of sales), to face major competition in the latter part of this yr. Sterling sees moderate risk to 2002 earnings and high risk to 2003, both of which have been recently raised by Wall Street. Firm expects a sizeable shortfall in revenue and EPS in 2003, and severe P/E multiple contraction.

To: Softechie who wrote (93903)	7/12/2002 12:06:05 PM
From: J D B	Respond to of 99280

It may close green, but I don't think so. Market internals have been deteriorating all morning.

To: Softechie who wrote (93903)	7/12/2002 12:14:48 PM
From: LTK007	Read Replies (2) \| Respond to of 99280

if it breaks 1382, it will be a fight to close green today.Will depend on how many shorts are out there that would do their eow close out. Max

To: Softechie who wrote (93903)	7/12/2002 1:33:49 PM
From: LTK007	Read Replies (1) \| Respond to of 99280

<<Bush Sees 56 Percent Surge in 2002 Deficit Fri Jul 12,12:35 PM ET WASHINGTON (Reuters) - The Bush administration expects the federal government to post a deficit of $165 billion this fiscal year, a 56 percent increase over earlier projections due in part to a surprise downturn in tax revenue caused by the stock market sell-off, officials said. While the White House will revise upward its 2002 economic growth forecast to 2.5 percent from 0.7 percent and project a return to surpluses in fiscal 2005( doubt that, deficit will keep building,imo--max), rising deficits in the near term could hurt President Bush ( news - web sites) and his fellow Republicans in upcoming elections, where small swings could shift control of both the House of Representatives and Senate. "The president deals with the cards that were dealt him," White House spokesman Ari Fleischer ( news - web sites) said, citing the recession and costs associated with the war on terrorism as justification for plunging the federal government into deficits for the first time in five years. Administration officials said the new projections also reflected a largely unanticipated decline in tax receipts from capital gains -- a finding that could increase pressure on the president to play a more active role in seeking to shore up the stock market. Bush is already under heavy fire from Democrats for failing to respond forcefully enough to a wave of accounting scandals that have sent the stock market tumbling to lows not seen since 1997. Polls show an erosion in public confidence in the economy and the administration's economic stewardship. Consumer sentiment tumbled in early July according to a report issued earlier on Friday. According to administration officials, the downturn in capital gains receipts dragged overall tax revenues down far more than expected even though economic growth surged in the first quarter of 2002. Capital gains taxes are generally collected from individuals when assets are sold at a profit. As stock values dropped this year, many investors racked up losses or held onto their shares. As a result, the federal government collected less revenue. The $165 billion projected shortfall in fiscal 2002, which ends Sept. 30, was revised up from the $106 billion deficit forecast by Bush in February. The Republican staff of the Senate Budget Committee recently forecast the budget deficit would reach $152 billion in 2002. The White House expects the shortfall in 2003 to drop below $150 billion. In contrast, Senate Republicans expect the deficit to climb to $194 billion. Despite setbacks in the near term, the White House Office and Management and Budget's mid-year budget review will project a return to surpluses in fiscal 2005, assuming that Democrats, who currently control the Senate, stick to the administration's proposed spending levels, officials said. UNDERESTIMATING CAPITAL GAINS Administration officials say the Bush White House is not the first to underestimate the impact of capital gains receipts on federal budgeting. Former President Bill Clinton's projections often missed the mark. But in contrast to Bush, Clinton underestimated the capital gains windfall as the stock market set record highs. "In the late 1990s we had surprise revenue windfalls and everyone thought it was because GDP ( news - web sites) (gross domestic product) was growing," a Bush administration official said. "But we're finding that that was not the biggest factor. The bigger factor was capital gains." The finding gives Bush new incentive to try to boost the stock market. A rebound in stocks would help the federal government return to surpluses, whereas a long-term stock slump could lead to bigger deficits for years to come. The outcome of efforts to boost investor confidence could have serious political implications for Bush and his fellow Republicans in November's congressional elections and beyond. While polls show Bush's overall approval ratings remain high, his marks for handling the economy have slipped. A recent CNN/USA Today poll showed his approval ratings for the economy fell from 72 percent last October to 58 percent now. A poll by the Pew Research Center for People and the Press found 62 percent believed Bush could do more on the economy, with only 33 percent saying he has done as much as possible. If public confidence in the economy continues to waver into the fall, analysts said it would be a huge boost for Democrats, who have blamed the reemergence of budget deficits on Bush's $1.35 trillion tax cut. Republicans counter that Bush's tax cut helped the United States recover from the twin shocks of a recession and the Sept. 11 attacks. They blame a surge in government spending advocated by Democrats, not lower taxes, for the red ink. "People who voted against the tax cut want to pretend that the tax cut was the cause, and it's not," Fleischer said.>>