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Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: Bonnie Bear who wrote (23145)	8/3/1998 9:57:00 PM
From: Mitchell Jones	Read Replies (1) \| Respond to of 94695

>>The next bottom for the russell is down another 20% back to april 97- at that level we will see many bankrupt companies.<< You seem to imply that a company's stock price determines its viability as a commercial enterprise. As long as a company has strong cash flow and earnings how does its stock price relate? Merger mania might well be affected because companies would no longer use inflated stock as currency;however,cash for growth should still be available if the business is indeed worthy of credit or if earnings are adequate. What am I missing here? Mitch

To: Bonnie Bear who wrote (23145)	8/4/1998 12:20:00 AM
From: James F. Hopkins	Respond to of 94695

HI Bonnie; One of the first things I ever got onto with stocks was the value line listings. They made it clear that in down turns every thing suffered more that blue chips, ( stock price wise ). They didn't say that it was because of liquid considerations, but that's obvious. Most people buy with the hope somebody else will buy it from them at a higher price some day in the future. But I'm not the only one who sees that you have to have buyers and new blood coming into the market or it sinks under it's own weight. I suppose the S&MMs and fund managers see how much new blood is or is not coming in before we do. In a sense when it starts down it's like passing a hot match around, so they lighten up on the small caps as it's harder to sell a lot of them without killing your own price. I might not be saying it right, but I equate it to my deal at the race track, instead of betting on the favorites that every one bets on, I look for good runners that the crowd leaves "good" odds on. ( not long shots ) just the over looked value "odds" wise. But when I find one I can't bet heavy as that turns around and kills the odds. Jim