To: George Mc Geary who wrote (18860 ) 7/9/1998 2:44:00 AM From: IQBAL LATIF Respond to
George-- I agree with this post- It looks no big deal to beat the lowered expectations and look like a hero.However such are the vagaries of market that you cannot justify certain moves on fundamentals alone. Lot of hoarse voices have come and disappeared calling these markets as biggest hoax, but consequently we have seen astronomical heights reached by all these intranet stocks this is the power of leverage. I have always justified whenever I argued my long case against chronic shorts that one cannot justify markets and companies alone on earnings. Although earnings are a definite part of the game plan I would like to have a global picture of the 'huge amount of speculative money' that is after new opportunities. As far as we remain within 22-24 time earning band with long term interest rate picture heading lower as it look likes presently and the economy stays strong with steady inflation most of these companies will do certainly well in such an environment earning prospects will look good. In case of MOT what price one would put on Iradium possibilities--coming soon, the economic revival in Japan and growth in global trade will all help MOT bottom lines, it may drift to 45 but there it looks terribly cheap, it is the revenues which one should keep an eye also, income or eps can suffer but a huge revenue is in itself is an attractive plus.
