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

To: Bonnie Bear who wrote (14122)	2/16/1998 4:36:00 PM
From: Liatris Spicata	Read Replies (1) \| Respond to of 94695

Bonnie- A delight to hear from you. Do any of these closed end funds have names? Regards, Larry

To: Bonnie Bear who wrote (14122)	2/16/1998 7:37:00 PM
From: P.Prazeres	Read Replies (1) \| Respond to of 94695

<. None of them will lose very much if interest rates go up> but they are headed down...

To: Bonnie Bear who wrote (14122)	2/17/1998 11:44:00 AM
From: Chip McVickar	Read Replies (1) \| Respond to of 94695

Hello Bonnie, If I recall correctly, you were thinking of investing in small or midsize financials and banking stocks/funds a while back..? I've been interested in this area also for a short term play. Well this weekend I spent sometime with bank officer and amongest other things she had a lot to say about the future of small banks in this country. Here is the gyst of it: The method of establishing book value of small banks and their inherant real value is changing rapidly. Their profits are being generated by the "new services and products" -- the finacial links that they can offer their customers. The old historical basis of savings accounts, loans, etc are nolonger a true reflection of book value. Where book value of 1 1/2 or 2 times was considered high....todays + 3 times is normal....and not considered overvalued. Take Overs Small banks of 5 Billion is place to be....larger regional banks see this asset base as the cut-off and ripe for the plucking. She is expecting a tremendous burst of "Take Overs" about to unfold, as the larger banks put their newly found wealth to good use. The new mutual fund access links, and financial products have created enormous profits for the entire sector. One Final Thought If the Big Kahna raises up on it's hind legs....this whole sector will make a wonderful short..? Have you found any Mutual or closed end funds concentrating on these small cap banks..? Chip