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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Hank who wrote (2948)	9/22/1998 5:33:00 PM
From: Kevin Podsiadlik	Read Replies (1) \| Respond to of 4634

I think that's a symptom of a trend reversal we've been having the past few days: the long out-of-favor small cap market has been showing some unusual strength relative to the large caps the past few days, and some of the money out there is reacting. That a lot of the junk companies are benefitting from this turn is perhaps unfortunate, but the market as a whole needed a small cap rally in the worst way.

To: Hank who wrote (2948)	9/23/1998 12:53:00 AM
From: hasbeen101	Read Replies (1) \| Respond to of 4634

Go through the list of stocks and look at the biggest percent gainers over the last couple of weeks. Interestingly, they always appear to be the stocks that are the most overvalued by any standard means of FA Not so. These stocks look overvalued based on past earnings, past sales etc. Most people on SI use these valuation measures. But Finance 101 teaches that the future cashflows are all that matters. The past is totally irrelevant. Obviously some people (enough to form a market consensus) expect these companies to grow so rapidly that the future cashflows will justify the current valuations.