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

To: Knighty Tin who wrote (43496)	1/15/1999 2:22:00 PM
From: Schrecke	Read Replies (2) \| Respond to of 132070

MB, At todays Bay Area Council Conference in San Jose, Abby Joseph Cohen was asked the following question by the MC. "When do you think common sense will prevail in the valuation of Internet stocks? The underlying fundamentals of these companies can not justify these crazy multiples." Abby answered first by giving historical examples from the past mentioning in detail the household appliances boom of the late fifties and then she said: "We think that the valuations models that are based upon market share, that are bases upon projected revenues do make sense. And we think that, as is the case in most new, fast growing industries, a focus on current earning and cash flow usually doesn't give you the right answer." You have often said you would not consider puts on Internut stocks until there there was an acceptance of the values by the main stream. It would appear we are getting closer. Heu

To: Knighty Tin who wrote (43496)	1/16/1999 11:50:00 AM
From: Stephen L. Smith	Read Replies (1) \| Respond to of 132070

From today's SF Chronicle: Abby Joseph Cohen, one of Wall Street's most influential bulls, told a group of Bay Area business leaders yesterday that she expects the market to continue its charge ahead this year. ...Cohen is even positive on Internet stocks, saying that they are not necessarily overvalued. "We think that the valuation models that are based on market share and based on revenue growth do make sense," Cohen said, adding that more traditional measures of stock-market value such as price to cash flow or earnings do not necessarily work for companies in fast-growing industries...