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

To: paulmcg0 who wrote (14240)	2/21/1998 3:54:00 PM
From: Mike da bear	Read Replies (1) \| Respond to of 94695

General Motors Corp. and Chrysler Corp. are each repatriating 10 percent of their stocks, and International Business Machines Corp. is buying back $7 billion in stock. ''When you realize that their entire market capitalization is only 22 percent, they could totally go private in the next 10 years if they keep up this pace,'' he said. Hummm, totally private? If the company keeps buying back shares, eventually there's only 1 share left and that person holding it owns the entire company. Just my opinion, but it doesn't seem right with companies buying back shares. If a company has so much cash why can't they invest it in new products which would yield a higher rate of return than buying stock. Somethings not right.. can't put my finger on it just yet. mdb

To: paulmcg0 who wrote (14240)	2/21/1998 4:16:00 PM
From: Tommaso	Read Replies (1) \| Respond to of 94695

Someone has already mentioned yesterday's NY times story--business section--on margin debt. It appears that lots of newer investors using discount brokers are borrowing heavily against their stock gains for other purposes. They are assuming that the market will stay up permanently. I wish I could copy the entire story to this thead--it's long and full of tables and figures. At Charles Schwab margin debit is up over 50% from a year ago. I think that margin calls go out for most brokerages when equity dips below 35%, so anyone who is 50% margined might well be forced out by a 15% correction, leaving them with a 30% loss of their capital. To state the obvious. But the obvious seems rather hard to see right now. Maybe at first some people would try to meet these margin calls by accepting a few of these wonderful credit card offers that fill our mailboxes. This is the time to go into bankruptcy law as a specialty. I wonder if, with the proper disclaimers, one could call oneself a "bankruptcy advisor" without a degree in law or accounting.Might be as lucrative as the first people who set up abortion reference services. There also in Barrons today an article about the big-cap stock buybacks that claims they have not supported the market that much. Maybe not, but they are surely part of the whole bubble.

To: paulmcg0 who wrote (14240)	2/21/1998 5:34:00 PM
From: Ibexx	Respond to of 94695

Paulie, I am hardly part of a herd. Record shows that I get there before the herd does, and leave before most of them do. We may just overlap a bit. Ibexx

To: paulmcg0 who wrote (14240)	2/22/1998 2:42:00 PM
From: James F. Hopkins	Read Replies (2) \| Respond to of 94695

Paul; Be aware Reuters news service is very biased, Paul McGinnis is a puppet saying what he is told to say. THIS IS AN OUT AND OUT LIE. The fund managers' cash positions are now at the lowest ebb since early 1972, and the upthrust behind the market seems to be simply the exuberance of fund managers who must keep their money in play. ---------------------------- GO look at Money Market Funds..( there is a record amount of deposits in DEC and JAN )...their report is pure rubbish. Reuters has an agenda, that goes beyond reporting objective news, on top of that they not long ago got caught in underhanded tatics and attemts to sabotage Bloomberg. In short they are a bunch of Slimy Limy crooks. But you can buy into thier slanted and tilted comments if you want. They also report only what they want they you to see, or at least don't mind you seeing. Slimy Limy Tories with slanted stories. The masters of double speak, and they remind me of forked tounge lizards. Jim