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Strategies & Market Trends : BFT: Will the tulip craze ever break down? -- Ignore unavailable to you. Want to Upgrade?

To: robert elmasian who wrote (168)	3/26/1998 6:11:00 AM
From: Pancho Villa	Read Replies (1) \| Respond to of 650

>The only guides as to the turning point which I can now conceive would be 1) an extreme, unsustainable upward acceleration in price, such as that produced by a short squeeze, 2) a general collapse in the overall market which would motivate those propping up a stock to move their money into safer vehicles, or 3) a large secondary offering suggesting that those on the inside are about to distribute inflated stock and run.< Sounds like BFIT fits your list pretty well. Pancho PS: thanks for the link!

To: robert elmasian who wrote (168)	3/26/1998 6:37:00 AM
From: Pancho Villa	Read Replies (1) \| Respond to of 650

>The bull market has put a premium on deception because it pays so well. Listen to J. Terry Strange, head of auditing at KPMG Peat Marwick, the fourth-largest accounting firm: "There's probably more pressure to achieve results than at any time that I've seen." Not only do bonuses and stock options depend upon earnings growth, so does a company's ability to do mergers, raise money and survive as an independent entity. Chief executive compensation is usually tied to corporate results-operating income, net earnings, stock prices. A few pennies more in per-share earnings can translate into millions in option gains and bonuses. Even for professional investors, it's not easy to see through the deceptions: Look at Oxford Health Plans. In theory, stock analysts should be on the alert for deception, but as FORBES has pointed out (Dec. 15, 1997), too many analysts are essentially on management's side. < From the fortune piece. Sounds familiar! Also be aware BFITs management is a sophisticated team of accountants. Still, they cannot create cash unless they steal it! Manipulation of financial statements (uncovered in these thread) resulted in the so called beating of the estimates. Pancho