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Strategies & Market Trends : Bosco & Crossy's stock picks,talk area -- Ignore unavailable to you. Want to Upgrade?

To: michael john stout who wrote (3599)	7/15/2003 2:34:38 PM
From: Crossy	Read Replies (2) \| Respond to of 37387

michael, option expensing is "phantom accounting" - it#s a paper number and doesn't change a single FUNDAMENTAL aspect. The way options are granted doesn'T change any real econimic parameter, just the way it may look like bottom-line. I'm honestly doubtful whether an accounting treatment creates reality or whether it'S the other way round. IT's the same insane debate as in the goodwill writedown problem that the end of pooling of interest accounting for mergers created. There was no change. It appears to me that some seem to confuse the tail with the dog. And if you look for "EPS" as your guide for investment value you are lost already.. Of course you have more bankruptcies in a recession than in boom time. It would surprise me if it were different. Hedonic price index adaptions are the norm and an accepted way of doing this. I have access to briefing.com and a number of statistics. Understand your stance on penny stocks. What I really don'T like are penny stocks with almost no revenues or "concept" or "story" stocks.. You are right, the prospects of a multibagger are the best motivation to go long in any stock.. I do not underwrite the notion that the markets are "insanely overvalued". I contend they aren't. 15 percent earnings growth annually is not suspect to me. After all corporate earnings are fluctuating widely and are highly "leveraged". Just a small sector boost and that sector's earnings accelerate remarkably.. A recession then destroys often 30% or more of earnings baselines.. So the 15% is not really problematic to me.. And if you "agree with me" that some earnings growth will be beecause as you say these companies cut cost, you are in fact NOT agreeing to me because that was not what I say. OF course we need GROWTH to set in to drive the entire economy. You cannot cut yourself into growth. It's a problem of a corporate mind set, nothing more.. Some proxy indicators of this are M&A transactions and IPOs.. Let's see.. rgrds CROSSY