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

To: Ilaine who wrote (41857)	1/1/1999 8:50:00 PM
From: accountclosed	Read Replies (1) \| Respond to of 132070

Coby, I would like to turn this conversation around into a positive thing. If CSCO seems overpriced to you, then we agree. I have some puts on CSCO. I am very much in MB's camp on the 90/10 and thirds money management discipline. He is the only person that I have seen on SI that regularly drives home the importance of money management in options. I am grateful to him for that. So my puts on CSCO are a very contained, controlled bet against what I perceive to be overvaluation. I find it reasonable to buy puts on stocks that I believe are overvalued. The thing I would say to you or anyone, is that with the market at these levels, if you are long, consider buying some puts on something you perceive to be overvalued. Wonderful companies with wonderful growth have some limit to their value.

To: Ilaine who wrote (41857)	1/3/1999 11:22:00 AM
From: Mike M2	Read Replies (2) \| Respond to of 132070

CB, Will would like to comment on the CSCO debate between you & AR. Garfield Drew said " stocks don't trade for what they are worth but what people think they are worth" so true especially in the current bubble. I would guess that the current PEs multiples in relation to a company's growth rate are the highest ever in many cases. CSCO is a good example of a great company whose growth rate continues to slow down and yet the PE expands. Will's friend owns it at a split adjusted ) $0.74 -bought Jan. 91 regrettably Will sold to soon :( . The bear's get irritated by the bulls attempts to rationalize irrational prices which are essentially variations of "new era" and " this time it's different" . Few investors have the courage to think independently because the crowd in right during the trend but wrong at major turning points and it is extremely frustrating to wait for the turning point. The fact that this market has shattered all prior valuation records and levels of participation combined with an unprecedented expansion of credit tells me that the inevitable bear market will be most severe in the mean time up and up it goes where it stops nobody knows -g-. I feel it must end in 1999 but we shall see but I am confident that we will have the most severe bear market since the Great Depression and those who overstay because they have been brainwashed to be in it for the long haul will deeply regret their position which ignores the lessons of history. Mike ho ho ho