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Strategies & Market Trends : ajtj's Post-Lobotomy Market Charts and Thoughts -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (59285)	5/6/2022 11:16:42 PM
From: Lee Lichterman III	3 Recommendations Recommended By ajtj99 Jacob Snyder Mevis Respond to of 96675

Many small biotechs now have market caps less than their cash. When the market sees the end of QT, biotech will recover. If their cash lasts that long. I don't have a big team of smart people with sharp pencils to figure out burn rates and filter out who can outlast the downturn and who can't so I paint with a broad brush. Good point about the leveraged funds. I was just meaning that LABU could be a decent day trading/swing trading vehicle but not anything longer term. That brings me to something I've been thinking about the last few days that I don't know the answer to. Everyone says that rising rates hurts high growth stocks and I get and agree with the basic premise that future money is worth less than current money. A lot of tech is getting creamed and rightly so however.... It also occurred to me when I was writing about LABU burning cash and having a hard time raising more, painting with broad brushes etc that some tech is getting painted along with the trash tech. Some big tech is richly valued and everyone is saying it is going to crash down but I'm wondering if some of the elite might be worth the premium. Cash rich, high cash flow generating companies with low cost, low supply chain risk should be good in my book. Let me be upfront, I'm talking some of my book here. I bought some MSFT despite the looming H&S but there's a story about a big whale shorting it and I have to wonder if it's just Musk being Musk and playing tit for tat because Gates is short TSLA. MSFT is priced high for perfection but they already reported, aren't too reliant on supply chain from China and poop cash. On the other hand, AAPL is going to have a hard time getting product out. I think physical tech and unprofitable startups will get cut but service tech that is already making money might be worth some premium. Then again, maybe I'm completely wrong.