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

To: Thomas M. who wrote (12574)	12/31/1997 6:57:00 PM
From: Zeev Hed	Respond to of 18056

Thomas, few weeks ago I run into an argument on this thread whether shorting a very overvalued stock like YHOO was wise. I stated then that depsite the possibility that Softbank might unload, YHOO was unbroken and thus a magnet to money seeking a home. This money will often concentrate in the fewere and fewer Unbroken issues and bring thenm form ridiculously high levels of valuations to ludicrously higher levels of valuations. YHOO was then 52 and retreating to about 48, and the small rally we had since brought this stock to 70. The same applies with CSCO, currently it is still "unbroken" and needs to fall below about 47 to break. Thus, during rallies it will serve as a magnet for that money seeking a home. I am not saying that CSCO is fairly valued, I am saying that it is as dangerous for a shorter to catch a top as for a long term long to catch a falling knife. Zeev