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Strategies & Market Trends : Roger's 1998 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Marty Rubin who wrote (13246)	8/28/1998 6:20:00 PM
From: Don Westermeyer	Read Replies (3) \| Respond to of 18691

Abbey C. is screaming the market is now 10% undervalued. She says the fall is due to a shift in sentiment - not valuation. No kidding Abbey! Maybe it was a positive shift in sentiment that sent the market to record valuation levels - not valuation their either. I wonder if that crossed her mind. With many of the worlds nations now slipping into recession (Hong Kong officially slipped into recession today) I doubt there will be any tremendous growth in earnings to support the current market P/E of 25. What really kills me is there is a lot of very good values in small cap stocks right now. Many trade with P/Es in the single digits that have real growth rates still (unlike the accounting gimmicks used by AMZN, AOL, etc.)

To: Marty Rubin who wrote (13246)	8/28/1998 6:26:00 PM
From: Michael Berkel	Read Replies (2) \| Respond to of 18691

Today I shorted KO. M. Lynch downgraded the stock yesterday. It will get hurt by Asian + Russian + South American troubles. No doubt about it. The company is growing at a much slower pace than the 50x 1999 price/earnings currently justifies. I expect other analyst downgradings to follow suit in the next 2-3 weeks. Granted, the worldwide brand awareness might be worth 30x earnings, but as soon as Wall Street fully realizes that the valuation is actually still much too high, the air will flow out of this one and we will be 15 points down from here. Your comments are appreciated! Michael