To: SemiBull who wrote (13267 ) 5/2/1999 1:21:00 PM From: Rusty Johnson Read Replies (1) | Respond to
Barron's Cover Story In numerous conversations, however, it's apparent that poll respondents see tremendously tempting values in the market's smaller-fry. "Small stocks today are priced at the largest discount ever to larger issues ," explains Petherick. Generally speaking, managers have been attracted to particular stocks and sectors by rosy profit forecasts, while concerns about overly lofty stock prices have determined most of their pans. A roaring bull market, however, has confused the difference between the two, particularly in the technology sector, where profits and P/Es both are subject to constant and wrenching change. Just consider the current poll, in which the managers, as usual, were asked to vote for the two industry groups most likely to lead the market over the next 12 months, and the two they consider most overvalued. Technology won on both counts: 119 managers deemed the tech-sector stocks the market's most attractive, while 95, including some of the aforementioned pros, considered certain technology groups the most overvalued.
