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Technology Stocks : Winstar Comm. (WCII) -- Ignore unavailable to you. Want to Upgrade?

To: bob glass who wrote (8036)	8/31/1998 8:58:00 PM
From: Jason Cogan	Respond to of 12468

Bob: I am surprise that you too are missing the fundamental point. <,Mr. Cogan, its not WCII, its the market. When the bloodletting is over, it seems to me that, based on its performance later in the day, WinStar will recover quite nicely.>> This is only half right. As I just reiterated to Litmex, Winstar's problems are both their own and the market's. To divorce one from the other is to ignore the reality of the situation. I disagree with your statement that Winstar will recover quite nicely. If the market decides in it's infinite wisdom that the best allocation of capital is to money losing telecom enterprises, than Winstar might recover nicely. But my experience suggests that when markets recover, the first things to do well are the sure things with sure cash flows. Take a look at the continued performance of US T-bonds for confirmation. Sure things. Sure cash flow. <<Oh, by the well Jason, unless you've shorted everything in sight, how did your portfolio do today? Even profitable companies got creamed>> I hate to rub salt in the wound, but I did indeed short everything in sight. AOL, AMZN, YHOO. So my portfolio looked stellar today. To be fair, this is just returning the capital I lost on the way up. On the long side, I continue to like profitable companies with ridiculously cheap valuations. Things like Ensco and the oil services sector come to mind. True, profitable companies will get creamed as long as the sell-off continues. But in the end, when people consider stocks again, there are earnings to point to. Something that can't be said for Winstar. Regards, JC