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Strategies & Market Trends : Bob Brinker: Market Savant & Radio Host -- Ignore unavailable to you. Want to Upgrade?

To: kahunabear who wrote (5264)	5/30/1998 9:23:00 PM
From: Skeeter Bug	Read Replies (1) \| Respond to of 42834

whip, the game isn't to be in business so much as it is how to use the accounting laws to your full benefit to take advantage of record valuations, imho. it is much easier to move that sharp pencil than it is too increase market share or prices. the companies that don't play the game or very thoroughly punished by low valuations.

To: kahunabear who wrote (5264)	5/30/1998 10:12:00 PM
From: Skeeter Bug	Respond to of 42834

food for thought on asia: exchange2000.com notice this... >>Q: Hold on -- corporate debt levels were a lot worse here during the junk-bond craze in the 'Eighties. A: True, but there are other sorts of leverage. You have been seeing around 1 1/2 % of the share float swallowed up each year by corporations -- on borrowed money. There has also been a lot of investment in machinery out there -- much of it high-tech, which everyone thinks is great. But when a company has invested a lot in productive assets, its operational gearing is higher. Come a downturn, a lot of people will be shocked by what drops out of the woodwork -- even in a normal cyclical recession. And it will happen, because the business cycle hasn't been abolished.<< companies borrowing money to buy back 1 - 1.5% of their float? why would they do that? ;-)