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Strategies & Market Trends : Pump's daily trading recs, emphasis on short selling -- Ignore unavailable to you. Want to Upgrade?

To: Secret_Agent_Man who wrote (6508)	7/14/2002 2:33:51 PM
From: Mad2	Read Replies (1) \| Respond to of 6873

Well perhaps I misjudged what you were attempting to communicate in your post. Your mention of 8-15 PE ratio I think is rather accurate in that 15:1 I believe is fair value and anything below represents a oversold condition that we are likely headed to, assuming the 30year rate stays where its at. Concerning Dubya and DC, I dissagree with your attack on them. While I doubt anyone in politics is lilly white, the true culprit is human nature, greed and fear. When the market was on the way up no one, particularly shareholders, wanted to hear the truth of option costs, pension accounting rules and anything that might be construed as holding a stock back for the sake of "conserative accounting" approach. The reality is public markets live quarter to quarter. Few firms have the ability to maintain an acceleration of growth and earnings over the long haul in neutral market conditions, yet thats exactly what we are expecting them to do. If management doesn't stand at the helm, forward ahead full and publically acknowledge the objective, the stock gets clobbered and so does he. Unfortunatly the past 20 years have been such that we in the USA had a excess capacity in labor and thanks to a diligent republican administration, inflation and long term cost of money was reduced significantly. These two points (along with technology development in semi-conductor area) have more to do with the bull market of the last 20 years than any individuals action. regards, m2