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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Jenna who wrote (13599)	8/30/1998 12:17:00 AM
From: Jenna	Read Replies (2) \| Respond to of 120523

In a previous post I made today I mentioned that I was extremely interested in the S&P 100 and 400 option puts because they get a good portion of their profits from foreign markets.. now I came across this in Monday's Barron's. ... The multinational companies cannot grow just by themselves because their markets are saturated. They depend on new markets. Coca-Cola, just in Europe and the U.S is not going to grow very much. They need to sell into emerging economies as do Procter & Gamble, Unilever, Nestle, Gillette and all he rest. So you will see some really disapointing earnings for the multinationals. Our earnings plays this season will be shorter than usual for the 'big earners' but will have a special section for expected earning shortfalls. Now if we took the top 10% good estimated earnings and the bottom 10-30%, we should find some of our big companies in the second group and the smaller growth companies in the first group that do not depend on foreign markets for their growth. We will short or buy puts in those big companies and we will go long the good earners or buy calls. My point is that even with a temporary rally or choppy stock market, our strategies remain the same since the damage by the Asian and East European crisis will not go away and it will continue to influence earnings going forward for many of our U.S. companies.