Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : FORE Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jas cooper who wrote (9345)	10/7/1998 11:15:00 PM
From: Len Roselli	Read Replies (1) \| Respond to of 12559

Jas, The only comment I have to your questions is this: Last night James Stoval said on NBR that the downdraft is not over because we haven't had a one day selling climax. From my own experience, I'm inclined to believe him. For me, it's really frustrating to watch the DOW make little daily movements while the NAZ continues to get creamed. I can't see how the NAZ can go much lower, but the DOW may have its selling climax any day now. BTW, FORE will double, but it's not going to happen in a month! If tech earnings aren't too bad in the next couple of weeks, we may see 14 in a month. len

To: jas cooper who wrote (9345)	10/10/1998 10:43:00 AM
From: Tavros	Read Replies (4) \| Respond to of 12559

James, With delay (I was travelling), a response to your questions: 1. For the past few years a lot of people (and mostly hedge funds) have been borrowing Yen (because of the low interest rates there - 0.5%), converting the Yen to $s, and buying dollar investments (from bonds to stocks or other things). Now, for first time, it seems that the Japanese authorities are doing something that maybe be credible, i.e., spending a lot of money to bail out their banks and their economy. This means higher Yen interest rates. So people are buying back the Yen they sold to cover their positions. The biggest Yen borrowers have been hedge funds and you must have read what has happened to them in other fronts. So they are liquidating big time. 2. The discrepancy between financials and other is, in my view, more of a financial stocks sell-off than the other way around. It has been caused by the fact that banks have had major losses coming from their exposures in emerging markets, and to credit products in general. Since I work for a bank, I can tell you that banks have lost money, but the reaction of the stock market is way overdone. In my view, great stocks like MER and JPM are great buys at these levels (I bought). I hope the above helps Tavros