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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (16792)	7/12/2006 7:12:33 PM
From: Rarebird	Read Replies (1) \| Respond to of 17183

>>There is absolutely nothing wrong with paying 25-50x earnings for growth stocks.<< That's how the tech bubble got started. The essence of a bubble is that it involves a sharp rise in the value of an asset that inevitably destroys the reason behind the rise. Tech was a classic example. The problem wasn't just that tech stocks rose to such giddy heights. It was that as prices soared and multiples expanded, tech companies began using their stock for acquisitions and massive capital projects resulting in a surge in the number of shares outstanding of virtually every major tech company. (Cisco, for instance, increased its share count by more than 50% between the mid 1990's and the early 2000s.) Wall Street (and the high techies,) saw no problem in this, of course, blissfully recommending that investors scoop up tech shares in anticipation of continued torrid earnings growth. But all those newly issued shares both diluted earnings and funded capital investment that led to vast overcapacity and ultimately an earnings collapse. (Ironically, if Wall Street had been more skeptical, tech stocks might have remained in a less frenzied but more sustained uptrend.) I don't see a bubble today, just a return to the stagflation of the 1970's, where prices are rising while employment falls. It's inflation that's making the multiples contract. That's where the real Bear market lies. I'm net short here so I'm enjoying this market tremendously. What I primarily care about is being on the right side of the Trade. Debt? I don't have any debt. I was raised to save and invest wisely. I'm a worker and creative thinker. All these people carrying debt are foreigners in spirit to me. It's Time for them to pay the piper while I profit! I have no biases like you when it comes to investing/trading in these markets. My goal is to profit, long or short. I don't care if it's in tech, gold, coal, energy, old economy, new economy, retail, consumer discretionary, etc; I don't give a flying hoot. I think that 2006 will not only see the Fed end its long string of rate hikes, but will also see the Fed start to cut rates aggressively as it tries to fight off the recession that's coming in 2007. Once the markets realize what's ahead, there are going to be some big moves in financial and commodity prices! But till then these markets are going downtown this summer and I plan on continuing to profit on the short side.

To: Lizzie Tudor who wrote (16792)	7/12/2006 11:32:43 PM
From: MJ	Respond to of 17183

EMC is one of my old friends in the market. Good to see an active board for EMC. Just heard from a dear friend of the Reagan Revolution----we were talking about the tracking of monies that support terrorism and agreed that we are fortunate that the wars are not here and approve of the tracking of transfers of $ that may be go to fund terrorism and incursions here. Bush did not start these various wars----Bush responded to a global situation that required responding to---otherwise those wars would be right here in California and Virginia where I am. More than anything this is what I believe is overshadowing the market---the possibility of terrorism and war here. "Bush and his policies to basically start wars and liquidate the treasury to buy votes have been a disaster. I think he is a lame duck now but unless we get a better congress in November there is still more damage that can occur" Now back to EMC---------what are the major reasons that I would want to buy or sell EMC at this time?? mj