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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Allen Furlan who wrote (5634)	1/2/1999 9:03:00 PM
From: Marchkis	Read Replies (1) \| Respond to of 78740

Re: Japan. In the Jan/Feb 1999 issue of Bloomberg Personal Finance magazine, it states that "Market mover Barton Biggs, the chief global-investment strategist at Morgan Stanley Dean Witter, is unabashedly optimistic about the outlook for Japanese stocks." He feels that Japanese stocks are "extremely inexpensive" based on almost any criteria other than earnings. He notes that the average price-to-sales ratio for Japanese stocks is the lowest in the world and he feels that this ratio is the best measure of long-term value. Biggs predicts that the Nikkei 225 Index could rise to 19,000. FWIW

To: Allen Furlan who wrote (5634)	1/3/1999 12:55:00 AM
From: Zach E.	Read Replies (1) \| Respond to of 78740

Another possibility for a bearish bet on an Internet stock would be to open a bear spread, using either puts or calls. The risk is well-defined, and the fact that you are selling one option and buying another (in the case of a bear put spread, buying the higher strike and selling the lower one) helps offset the fact that the options are so pricey. Of course, a spread also limits your potential rewards. Shorting these stocks has nearly unlimited risk, and as Michael Burke (and probably others) have said, if something is overvalued by a factor of 10, there is no reason for it to go to overvalued by a factor of 20, 40, etc. I have no position in any of these stocks, but find the phenomena interesting to watch. Regards, Zach