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Technology Stocks : Egghead Computer (EGGS) -- Ignore unavailable to you. Want to Upgrade?

To: Kingpin who wrote (457)	3/17/1998 4:41:00 PM
From: Oeconomicus	Read Replies (1) \| Respond to of 8307

But you were making a bear case based solely on his ideas. My point was not to debate the work of Graham. They are as tired as ole Bill. You obviously missed the entire point. Fleckenstein has nothing to do with it. It is merely coincidence that I found Graham's comments through him (for which I think him nonetheless). Graham's observations about the 1927-29 market ARE the point. The market psychology and rationalizations he noted led to the extreme valuations of 1929 and, subsequently, to the disastrous crash. And, what do you think Graham's point was? Basically that tried and true concepts of value were thrown out the window in favor of "new era" investing which attempted to justify the unjustifiable. The same rationalizations are being used now to justify paying 10, 20, even 50 or more times sales for internet companies; the only difference between now and 1929 being that the valuations are many times more extreme and are based on almost no track record for the company or the industry. Congratulations if you made money riding the wave of insanity. Undoubtedly you expect to be sharp enough to exit just in time. Good luck. I'm sure everyone else on the bandwagon thinks the same thing. BTW, in case you are wondering what this has to do with EGGS, it is simply that all the longs here are relying on momentum, valuations relative to the internet high flyers, and/or market psychology to push it ever higher. Maybe it will work a little longer, maybe it won't, but this bubble will burst like all great bubbles. When it does, don't expect a small company that has failed badly in its primary line of business to be spared. Bob PS: If you have such a great track record that it gives you the right to challenge Fleckenstein's record, perhaps you could publish it here. While you're at it, tell us who you are (having been on CNBC and all) rather than hiding behind your nickname. If you really believe in this new era -oops- new paradigm, you shouldn't be too embarrassed to publicly admit to it and tell us who you are.