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.

Strategies & Market Trends : Waiting for the big Kahuna -- Ignore unavailable to you. Want to Upgrade?

To: bobby beara who wrote (33189)	11/6/1998 2:34:00 PM
From: Greg Jung	Read Replies (1) \| Respond to of 94695

"Fundamentals remain a back seat ..." Well in some issues I can whole-heartedly agree about overpricing. But underneath the top big-caps is a whole 'nother market which has been beaten to the ground, far off the levels of 1997 in most cases and appropriately or under-priced. Why aren't these rising so quickly? Market particpants with big cash piles are looking for quick kills in rebounds of the recently slaughtered. Cash flow, earnings, etc. do not matter - only price and liquidity. I think these issues will flounder after a point (probably attained already) and, while volatile on the 5-20% level, basically stay flat. Meanwhile out in the suburbs the overflow to the under-invested names proceeds, now at slow pace that will later grow as these issues climb above the $5, $10 level. Maybe not a lot of bonafide home runs there but plenty of doubles and triples can be made without budging the S&P. Speaking of fundamentals, one radio speaker was comparning PE ratio to return on equity and claiming that a rough equality justified the price - i.e. making KO an good price. For all the call-in stocks he was doing this comparison like a magic elixer. Has anybody heard a cause for such a method? Greg