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Pastimes : CNBC -- critique. -- Ignore unavailable to you. Want to Upgrade?

To: David Harker who wrote (2563)	4/29/1999 6:21:00 PM
From: Gary M. Reed	Read Replies (2) \| Respond to of 17683

CNBC is turning into Comedy Central. I have to laugh when I see these portfolio managers poo-pooing the move into cyclicals. It is so obvious...these guys are stuck with internet stocks that were bought at the highs, so instead of acknowledging the market turning over a new leaf, they feel compelled to pump up their "has-been" holdings. I also had to laugh at Rene San Miguel's report this afternoon. Someone needs to give Rene a little history lesson. Way back when, back before Jeff Bezos was a household name, there was this item on a company's income statement called "net income." Companies that could generate net income were valued accordingly, and those who couldn't were punished accordingly. Due to the hyperbolic rise of dot.com stocks the past year, most people forgot about this ancient yardstick called net income. Rene seemed perplexed that investors would ditch their dot.com stocks that don't have "net income" in their future and use the proceeds to buy stocks that trade at 15x earnings, a significant discount to the S&P multiple. Perhaps one of the CNBC veterans can give Rene a lesson on how stocks used to be valued. And perhaps once Rene masters that course, someone can instruct him about how to value stocks that have a dividend yield. Yes, dividends...discarded like a bad polyester suit from the 70's, they're now back in style. Go figure. And isn't it ironic that the goofball portfolio managers and analysts who compared value investing to dinosaurs are now the dinosaurs themselves. Anyone who got duped into this momentum investing is now finding out that it was a big game of musical chairs. The self-proclaimed "geniuses" who thought that dot.com would last forever and fundamentals didn't matter need to go back to business school. Perhaps Warren Buffett isn't a dinosaur afterall. To CNBC producers: please continue to air these crybaby portfolio managers who got left holding the bag on the internets. The comedy value is sensational.