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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: IQBAL LATIF who wrote (8153)	10/28/1997 11:12:00 AM
From: Tommaso	Read Replies (1) \| Respond to of 94695

A huge IBM buyback would be just more evidence of fundamental unsoundess in this market. Buying back your own overvalued stock is a terrible misuse of capital. At the end of a true (3-5 year) bear market, with share prices beat way down, and if IBM had bad cyclical troubles, it could eventually make way for (unthinkable right now!) a takeover. I do not seriously think that would occur--but stranger things have happened. Yesterday was not a bear market. Yesterday was just proof that conditions are ripe for the beginning of a bear market. John Train speaks of the "savage cut" that typically precedes a long grind downward. I think people of thinking of 1987 and not of 1969.