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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: LTK007 who wrote (2671)	4/4/1998 9:27:00 PM
From: Sergio H	Respond to of 29382

Max90, I have to admit that I was slow to get in on the internet stock rally. Amigo Mike was right but I felt it was just a quick phenomenum. I do think that some of the internet high fliers like Yahoo are due for a correction next week. If the sector leaders are taking a pause, the second and third tier stocks will not be good plays. The other side of the argument is that the sector will remain hot because there just isn't that many stocks to play in the sector. I'm more inclined to side with the correction camp short term. The home builders should enjoy a good week next week. The unemployment numbers put inflation fears at rest and the DOW's surge to 9000 will add some fuel. The warm winter climate has certainly helped this sector. I am sure that we're going to see DHI press for the 30s in the next 4-6 weeks. An excerpt from a recent article on the industry: Home builders enjoyed robust orders and most anticipate healthy earnings growth in the first quarter of 1998, thanks to low interest rates, a mild winter, surging consumer confidence and a thriving economy. But stormy weather in California is causing delays in some closings, which may cut into earnings growth slightly in this quarter, and more dramatically in the next, experts said Thursday. "We expect to see a healthy increase in deliveries, orders and profitability (in the first quarter)," said Merrill Lynch & Co. analyst Bob Curran.