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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (36079)	11/13/1998 12:27:00 AM
From: Joseph G.	Read Replies (2) \| Respond to of 132070

<< true tulipmania ... commenced in the 1636-37 season, when "the trade had lost all relation with any physical object,">> Never new Dell stock bot on margin, or call options were "real physical object". PS. As a lawyer you might want to learn to stay on the subject of discussion at hand, which was <<tulipmania, like other real bubbles, had a frenzied quality that bidding up the prices of Dell, Intel, and so on, lacked>>. Er, never mind, it's not required in the profession. -g- Specifically: what makes you say that bidding up price of Dell stock has any less frenzied quality than bidding up price of tulips?

To: Ilaine who wrote (36079)	11/13/1998 10:42:00 AM
From: Mike M2	Respond to of 132070

CB, for a detailed account of Law's Mississippi scheme read " Fiat Money in France" I don't recall the author it was from the library. For a detailed summary of Miss. scheme read " Trader Vic Methods of a Wall St Master" by Vic Sperandeo. IMO we are in a major bubble I will elaborate on this point in the near future as I am pressed for time now. Mike

To: Ilaine who wrote (36079)	11/13/1998 11:47:00 AM
From: Mike M2	Read Replies (1) \| Respond to of 132070

CB, here is bubble stock compared with CBS #reply-6371762 I also posted a link recently comparing some bubble stocks with smokestack cos. I don't recall the date but Forbes ran an article about a study done by Andrew Smithers of London; he calculated the earnings of many companies if they had to expense the cost of esop on the income statement rather than reduce shareholder equity on the balance sheet. The cost is now disclosed in the footnotes. At the time of publication the PE on the S&P was 28 but would be 35 if options costs were expensed on the I/S. I have the article somewhere. Many profitable high tech companies would report losses if the esops were expensed on the I/S . I don't recall the impact on Dell but it was significant . In addition Dell uses a huge amount of it's cash flow to repurchases its own shares. In the old days companies would invest excess cash back into the business but now that bubble economics is in vogue management wants to have the share price rise as quickly as possible for the benefit of shareholders and their own stock options. Mike