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Technology Stocks : Semi-Equips - Buy when BLOOD is running in the streets! -- Ignore unavailable to you. Want to Upgrade?

To: Joseph Beltran who wrote (6484)	8/5/1998 3:26:00 PM
From: Will Lyons	Read Replies (2) \| Respond to of 10921

The bluest chips are overpriced because investors buy funds and the funds have to buy the biggies . They can't afford to buy the small caps because the funds are too big and would have to have too many small investments to monitor. As the public gets wise to the situation they may begin to shift back to the good old days when individuals bought stocks. Then they will find that they don't have to buy funds that are investing at such high p/e ratios. Those of us who look at fundamentals can find many small caps that are selling at low p/e's [rates around 10-15 not hard to find] relative to growth rates and some are at only 2 to 4 times cash!

To: Joseph Beltran who wrote (6484)	8/5/1998 3:28:00 PM
From: Jim Willie CB	Respond to of 10921

final arrival of DEFLATION... in Asia it swept the continent like an indigenous monsoon... in US it hit commodity prices first, then prices dependent upon commodities, maybe prices in general... then it hit profits... now it is hitting capital expenditures and mfg hiring, which react to lower profits... IT JUST HIT THE STOCK MARKET... then comes the mini-recession and everybody asks "HOW DID IT HAPPEN?" last year and early this year the US economy had a strong mitigating factor in reduced interest rates and the consequent huge money flow from housing refinances if not corporate refinances... corporations restructured their debt... now that mitigating factor has lessened or maybe disappeared... now deflation is chipping away at our economy steadily but surely... the supposedly invincible service economy of ours is servicing what? answer must be the rest of the deflating economy fool's argument is that inflation is low and interest rates are tame... that will keep many ignorant investors buying on the dips...... I see Dow heading to 8000, with real bounce only there... until then, all bounces will be met by onslaught of selling check TBonds and an apparent bear triangle... base yield is 5.75% with peak of triangle coinciding with yield of 5.5%... bond rallies have been progressively weaker recently... target yield if triangle augurs correctly a little breakdown is 6.0% bonds... possible scenario justifying higher rates is disappeared federal budget surplus from disappeared capital gain tax revenue from disappeared stock profits market rally today bordered on pathetic... next stop on the bus 8000 ooops / Jim Willie