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Technology Stocks : Echelon Corporation (ELON) -- Ignore unavailable to you. Want to Upgrade?

To: Ted The Technician who wrote (3015)	7/20/2002 11:03:05 AM
From: Ted The Technician	Respond to of 3076

Should bubbles be popped or should the air be let out slowly? The real estate bubble in Japan has been having its air let out slowly over the last 10 years. Over-leveraged banks are being given the chance to strengthen their balance sheets at the expense of stronger banks. Executives at Enron and WCOM tried to let the air out of their bubbles slowly. These two stocks dropped slowly over a period of one year as investors were slowly awaken to the facts. I see the bubble produced by companies not expensing options being reduced slowly over time. Regulatory bodies are giving companies and shareholders time to adjust to having to expense options. Shareholders who do their homework are being given time to exit the positions in a "calm" market; whereas companies are being given time to figure out what to do to mitigate the impact of options expenses to the stock price (or rather to themselves). Companies will likely redesign the options packages so that they will be less of an impact to earnings.