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Technology Stocks : The Learning Company (TLC) -- Ignore unavailable to you. Want to Upgrade?

To: JOHNNY DOLLAR who wrote (5288)	8/11/1998 5:50:00 PM
From: Trader Dave	Respond to of 6318

Johnny, I absolutely agree on the overall market. But I can hedge my small cap bets that are growing faster than the overall economy while being valued at levels below the overall market by betting against the big caps. That's why I view TLC as relatively "defensive." However, you are correct that if we see the dow get to a proper valuation, there's downside in TLC. However, I see less downside in TLC and given its overall position, I think it will be likely to come back quickly once the market places a premium on valuation as opposed to size. TD

To: JOHNNY DOLLAR who wrote (5288)	8/11/1998 9:57:00 PM
From: Fred Fahmy	Read Replies (1) \| Respond to of 6318

JOHNNY, <but markets around the world(Asia, Russia) are getting killed...> You know, this is not a random process. There is a reason the Asian and Russian markets are getting killed. Have you checked out their economies lately?? I do think there are excesses in our market, especially in many of the large cap DOW stocks. However, there is still plenty of value (including stocks like TLC). It's going to be very hard to keep the US markets down very deep or very long as long as inflation is nil and interest rates are low and dropping. Re: Serious downside risk Sorry, but I have been hearing about this for almost 3 years. The fact is that by now even if the market crashes more than 50% (unlikely, I think) I will still be better off than I would have with any other investment vehicle over the last 3 years. Instead of being up 200-300% I would only be up 100-150%. However, this would not have been the case if I would have listened to the nay sayers two years ago telling us how this bull market can't last. Don't get me wrong. I am not fully invested because I want to have cash around as opportunities arise. But I'm not going to sell solid long term positions just because the general market may be overvalued....especially when economic conditions are so favorable. P.S. Given your beliefs, are you heavily short this market? If not, why not??? FF