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Strategies & Market Trends : MARKET INDEX TECHNICAL ANALYSIS - MITA -- Ignore unavailable to you. Want to Upgrade?

To: High-Tech East who wrote (14040)	8/3/2002 7:34:02 PM
From: russwinter	Read Replies (1) \| Respond to of 19219

I have a Morgan Stanley account, and have read through some of Roach's recent comments. I'm not so sure he is calling for a big capital spending turndown from these levels? Personally I think you have some normal maintenance and replacement that needs to occur. And telecom: it's like the railroad busts of the 19th century, they just get recapitalized in the bankruptcy process, some excess capacity gets removed, and another more restrained cycle starts again. It's not going away. Roach is mostly concerned about real estate bubbles and the consumer at this point, and so I'm I. Nevertheless when you start seeing TRUE mark downs to around 0.5 sales/enterprise value on many top flight technology companies with strong cash levels and balance sheets, I think value investors step up and buy. Of course that's not to say tech funds don't get more redemptions and they can't go lower. I've been writing puts here, as the premiums are high and get you in even cheaper. They're not just down like people have been saying for two years of decline, they're now getting to liquidation value. I'd add SUNW to this list now at 3.66: Message 17827977