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Technology Stocks : Novell (NOVL) dirt cheap, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Frederick Smart who wrote (20852)	3/8/1998 8:01:00 PM
From: Paul Fiondella	Respond to of 42771

Dwight I think Fred is full of hot air He doesn't seem to understand what happens when a over-valued stock (overvalued for its underlying asset value that is, as in asset inflation) declines to a level more in line with the real asset value. Maybe we should chip in and send him back to school for the sake of the people whose money he is handling?

To: Frederick Smart who wrote (20852)	3/9/1998 10:36:00 AM
From: dwight vickers	Respond to of 42771

Since the market is not a zero sum game, a decline by definition drys up liquidity. Investor assets evaporate. Leveraged assets evaporate exponentially. A 10% decline in a $3 trillion market makes $300 billion disappear (less the profits of shorts). Do the numbers and analyze the fallout from a larger decline. The liquidity you are referring to is borrowed liquidity. Always available for a price. Not of help for stopping a falling stock market this size. Apologies for not giving you a more detailed and simpler explanation on the first go. The street is littered with people predicting a top in the markets. The best minds on Wall Street. Others would have you believe that the market will go up forever. Not the best minds, as time will prove. I don't pretend to be able to predict the day of the top, or the price level. Maybe you can supply those. I will be satisfied to profit from it as I see it developing in the case of a blow off, or recognize it soon after the fact in the case of a slow rollover. It's like predicting recession. The weenies all tell us there isn't one on the horizon when it has already started. Yada, yada, yada your ass, by the way. Dwight