Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Non-Tech : Auric Goldfinger's Short List -- Ignore unavailable to you. Want to Upgrade?

To: Kevin Podsiadlik who wrote (2068)	6/4/1999 6:11:00 PM
From: Sergio H	Respond to of 19428

OK, thanks KP. AS

To: Kevin Podsiadlik who wrote (2068)	6/4/1999 7:42:00 PM
From: RockyBalboa	Respond to of 19428

KP, when I began to trade stocks, the VSE was in tulipomania phase. Well there were no real daytraders etc, but within a short timeframe many stocks five- and tenfolded, all very familiar. This was in the period 1989-1990. All for sudden, the music stopped. Stocks didn't rise anymore, IPOs who doubled that time after listing yesterday were hard to sell today, and, many never came off the gate. It was characteristic, that near the end of the bubble, lots of junk equity came to the market ... various sorts of participation certificates of unknown companies etc. (the worst example was a company who did a stock newsletter. They had 80k dollars equity and tendered off some 500k participation rights on the third market). Jim Rogers discovered the cheap stock market level (by earnings...) earlier and the rise began. It was the perfect greater fools market. Warrants got very popular, as the stocks itself were too heavy to trade for the public. I remember one incident, when the head of trading auctioned off a freshly issued warrant in the middle of the trading floor of one popular bank. The warrants' underlying was the stock funds of the own bank... When the bubble bursted, many people were very screwed up, as most of the securities expired worthless. Jim Rogers gave an interview where he meant, that he dosn't expect a sudden selloff but that the exchange languished for years (In fact, he sold all his shares except one - a company which was taken out by Magna later on). What indeed happened was that many of the stock sold off in the following uncertainty - the Russian Crisis. But the bounces got smaller in altitude and there was simply nothing to trade. Till now the market is one of the worst performers all over the world, only beaten by the Nikkei ... Many stock never recovered and trade at 10% to 20% of the peak value, some companies went bankrupt and even the blue chips had a lackluster performance for years.