Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : Ask Mohan about the Market -- Ignore unavailable to you. Want to Upgrade?

To: Haim R. Branisteanu who wrote (8015)	11/15/1997 1:02:00 PM
From: studdog	Read Replies (2) \| Respond to of 18056

Thanks Haim, If you are correct than a 15% - 30% drop in earnings would produce a fair value of 580-630, pretty dire. What makes you think there will be such a drop in earnings? Decrease in demand, decrease in prices, or both?, Remember, If this does come to pass then bond rates will really tank. This reaction would prop up the market to some degree, and also increase demand as interest on business loans, mortgages etc. drop. Makes getting leveraged (mortgages, loans etc.) look pretty attractive. I agree on the autos. They are really hamstrung by global capacity. I think unit demand is ok, they just can't price and have to give incentives. Other industries in the same boat include DRAM companies, Hard drive companies and motor homes. I think some of these companies will go belly up, but this is not, as far as I can see true in all sectors. Karl Karl