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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?


To: Pancho Villa who wrote (7896)4/27/1998 8:17:00 AM
From: Bob Trocchi  Read Replies (1) | Respond to of 18691
 
Pancho.

For those who have access to Barrons, the following in this weeks issue are very good articles that warn of the high stock price valuations. I have pasted a few snipperts from the first article.

>>Together, Microsoft, Intel and Cisco contribute nearly half a trillion of the roughly $2 trillion in Nasdaq's total market value.

They account for 59% of the total earnings of the Nasdaq composite. Which means, of course, that the other 5,449 companies in the index chip in only 41%.

.from the bottom in October 1990 through the end of the first quarter of 1998, the market value of the Nasdaq Composite expanded by 655% on a 114% gain in earnings. Even more strikingly, from January 31, 1995, through March 31, 1998, the index's market value rose by 169% on an increase in earnings of just 15%.>>

interactive.wsj.com

>>Profit Performance Is Less Perky Than It Seems<<

By Andrew Bary
interactive.wsj.com

Bob T.



To: Pancho Villa who wrote (7896)4/27/1998 10:17:00 AM
From: Bald Man from Mars  Read Replies (1) | Respond to of 18691
 
Pancho:

Your shorts should be doing well since the market drops like
a rock.

I think this rate thing is a scare, the FED probably will
not increase interest rates, and even there is a rate hike,
it will already be factor in, so there should be a relief
rally one way or the other on May 19th when the FOMC meets.
But come June, when the preannounce of awful earnings start
to come in, I think this market will really tank ...