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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (10464)	7/18/2002 11:16:04 AM
From: chomolungma	Respond to of 10921

Low interest rates should have led to higher stock prices, I agree. Many utilities are being questioned by the SEC now. I think that has helped bring the whole group down. It's probably not the whole explanation. The utility index used to be a good proxy on interest rates because utilities were stable, had high dividends and lots of debt to build massive plants. The companies fortunes were tied to interest rates and the securities behaved like fixed-income securities. Today the definition of a utility has changed and the characteristics also. Many companies in the utility average are just as risky as other companies and don't behave like bonds.

To: Gottfried who wrote (10464)	7/18/2002 12:52:45 PM
From: Jim Willie CB	Read Replies (1) \| Respond to of 10921

several possible explanations for utility index decline a) they are loaded with debt burdens which may not be easily rolled over and refinanced b) they might have growing derivative losses soon to face exposure c) they might be engaging in phoney transactions which would tarnish their bookkeeping d) they might be in a squeeze from rampant state controls of middleman pricing e) maybe with all the Fed monetary stimulus, inflation is anticipated in 2-3 years we will see in the meantime, I am dizzy, I cannot see straight maybe I am far too negative that my vision and thought process is shakey / jim