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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: DMaA who wrote (17297)	6/12/1998 3:16:00 PM
From: joe	Read Replies (1) \| Respond to of 45548

>>I read an article some time ago about Greenspan's market model that showed stocks over valued. The same article pointed out that if interest rates dropped, without prices changing at all, the model would show stock undervalued. That was 50 basis points and several hundred DOW points ago.<< I read something very similar. So now we're getting: 1) lower interest rates 2) good-sized correction in DOW and Naz By these things alone we should have been done with the correction a few days or more ago. I think what aggrevating the valuation problem is the sudden realization that ASIA is a big unknown again. Just as we thought we had a handle on the problems there, they are back in full force. The reason why ASIA is so important is because, analysts think it will drastically kill profits. They see no visibility on the profits equation. Last quarter, analysts thought that ASIA would get under control by 2nd 1/2 '98. But now they're not so sure. And this is what's killing us. So the market will lower prices to the point where they are sure company profits will be acceptable, and then maybe a we'll see a rebound, if ASIA problem looks better, or if there is visibility on profits. I always wonder why Europe is not factored into profits more strongly...I think it's because they're upturn is too young still, and they are also affected by ASIA and possibly RUSSIA. So, we're back to the same old question. When are we gonna hit a bottom? Even by WAYNE TA, I don't think we have that strong of volume to indicate a bottom. VOLUME = 8,135,800. I think we need at least 10,000. Volume I think will be the indicator of 'the bottom'.