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Technology Stocks : Y2K (Year 2000) Stocks: An Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Risky Business who wrote (11586)	5/16/1998 11:20:00 AM
From: P. Ramamoorthy	Read Replies (2) \| Respond to of 13949

y2k investors - There are several reasons why y2k stocks are down. One factor, evidence for which, is becoming apparent from SI posts is: margin calls. After the prices fall below certain level, margin calls tend to accelerate price fall further as investors are forced to liquidate. "Shorts" are happy. Trying to keep my average cost of y2k stock ownership (long term) equal to their current cash/share, regardless of how great their technology is or future potential is. Unless the management make stupid moves with their cash, current cash/sh tells me what the stock will be worth if these companies are bought out. Add to this value, a company's ability to grow earnings. For example, some have 30-50% earnings growth rate targets. Not trying to find excuses for long term holding, just an opinion. Reflecting back, y2k started out (Mad Monk) as one of a kind unique opportunity, changed to trading (contract announcements and hype) and momentum plays (earnings and surprises), now valuing on cash/sh basis. Ram