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To: Brian Hutcheson who wrote (3192)	12/27/1997 1:30:00 AM
From: greg nus	Read Replies (1) \| Respond to of 6843

Brian, Why not? What do you suggest?

To: Brian Hutcheson who wrote (3192)	12/27/1997 2:13:00 AM
From: greg nus	Respond to of 6843

Brian, Part of what wrong out there. More disturbing news...CNBC gave a report tonight on Business Center that may have an explaination to what is going on with the stockmarket, and the technology sector in particular. Apparently over the last week mutual growth funds have incurred unpresidented substantial redemptions of funds. Almost $10 billion in one week. The growth funds are heavily invested or were invested in technology. Some of the selling was for tax selling purposes, and other in reaction to Asia meldown concerns. Asside from this report, US mutual Funds investing in Asia have sustained losses in excess of several hundred billion $$$. With heavy losses sustained by some brokerage house clients, some clients are paralized to make any moves. This appears to be a clue into the momentum loss in technology. Previous momentum was the rocket fuel that propelled the technology sector to new highs on expanded pe ratios, in a term, a bubble. The loss of momemtum popped the bubble deflating the pe ratios that had risen to historic highs, supported by low level interest rates and yields on US longterm treasuary bonds currently at 5.9% could support a stock pe ratio of of 20 to 24 as the S&P 500 index reflects. What does all this mean? I'm not sure we know all the facts but what comes to mind is that a good deal of damage has been done to the market place. In particular the tech sector. If you add to this the predicted earnings growth slowdown from the potential reduced growth rate the tech sector had enjoyed out of Asia it would indicate that the market will need significent amount of time to regain the momrmtum. Each company will be affected in differing degrees. To regain momemtum individual companies well have to prove results or deliver a credible story that the street winds up buying. As it turns out AMD would have tanked even without the yield problem incurred, based on collasping pe ratio's as demonstrated by Intel. Does anyone else have any other ideas as to what's going on out there???

To: Brian Hutcheson who wrote (3192)	12/28/1997 12:59:00 AM
From: Brian Hutcheson	Read Replies (2) \| Respond to of 6843

Greg , re. why not this is the kind of situation I have specialised in over the last few years . Investors anticipate the turnaround before it happens , in part due to news that somehow leaks out from a company . Also once a stock goes into a downturn it very often goes further for technical reasons until it is really oversold , usually this occurs around the end of the year as tax loss selling . When that selling peak occurs the stock is ready for a strong rally just on technical grounds e.g. 25 % jump into feb '96 even though news on K6 was still 10 months away . That tax loss selling has all but ended IMHO and AMD should start to rebound in january .