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Strategies & Market Trends : Winter in the Great White North -- Ignore unavailable to you. Want to Upgrade?

To: WillP who wrote (2598)	7/20/2002 8:31:00 PM
From: teevee	Read Replies (1) \| Respond to of 8273

Will, I hesitate to seek a pessimistic opinion, largely because of what it would imply for the Nasdaq. I have heard learned comments stating that when the cost of stock based compensation and options are charged against earnings, the reported earnings of even the stalwart Nasdaq companies will be cut by two thirds. The share prices will have to reflect this new reality and drop by two thirds, assuming that multiples don't contract any further too. If this comes to pass, 6500 on the Dow will just be a blip on the way down. Those companies that can't meet payroll without stock based compensation will dissapear. One company that has uses stock based compensation as no other company does, is MSFT. The cash position of MSFT is very high, but the stock may yet get a hell of a haircut, if only because it is one of the few remaining stocks whose price hasn't collapsed. On the diamond front, what do you hear about the Melville peninsula? cheers, teevee