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Strategies & Market Trends : Three Amigos Stock Thread -- Ignore unavailable to you. Want to Upgrade?

To: Sandra who wrote (8168)	8/27/1998 10:27:00 PM
From: JoeinIowa	Read Replies (1) \| Respond to of 29382

Sandra, I think the small caps will stop falling before the large caps. They have already been beaten badly. I'm doing a complete revaluation of what I think small caps are really worth. Kind of like devaluing currency which is popular these days. I don't think you will see any people jumping into small caps until things settle. Once they get some confidence back in the large caps then the small caps may come back. I suspect we will continue to see a very choppy market with these types of days possible at any time. Jose PS I'm standing on the sidelines watching the world go by.

To: Sandra who wrote (8168)	8/27/1998 11:26:00 PM
From: Amigo Mike	Read Replies (1) \| Respond to of 29382

Sandra, I agree that the small caps may now bottom out while the large caps finally get bruised. After all, the large caps are the companies with the global exposure. Earnings performance in small caps should far outpace the big boys. I've been doing some homework on my IFCI and APCO tonight. The PEG ratio on these are .15 and .39 respectively. Typically a stock is fairly valued when the PEG ratio is at 1. Just goes to show how far undervalued some of these stocks are at the moment. The PEG ratio would indicate that IFCI would be fairly valued at around .... gulp..... $45 and APCO around $18. Obviously I don't expect those kinda prices anytime soon ...... but double digits would be a good start =). These two deserve to lead the pack. Amigo Mike