RE: The Politics of Recession

["John M. Legge" <jlegge@xxxxxxxxxxxxxx>]

Sven,

I don't know how far the "new economy" stack prices must fall to become
bargains, put it could be a long way.  I value Amazon at under $3: it is
still trading at over $11.  Henry passed me some analysis suggesting that
Cisco is worth no more than $5: it is currently $38 and rising.  Microsoft
is $40 with a p/e of 22 and a friend in the White House; but if they start
paying their senior staff in money instead of share options there won't be
much profit left over unless they lay off lots of people in which case there
will be no growth left over.  Say "fully valued" at $20 - $25.

Bargain hunting may soften the crash but I doubt if it can avert it,

JML

> -----Original Message-----
> From: pkt-owner@xxxxxxxxxxxxxxxx [mailto:pkt-owner@xxxxxxxxxxxxxxxx]On
> Behalf Of larson@xxxxxx
> Sent: Friday, 22 December 2000 7:02 AM
> To: pkt@xxxxxxxxxxxxxxxx
> Subject: Re: The Politics of Recession
>
[snip)
> For one thing, equity markets will be scouted by
> bargain hunters
> rife with cash and eager to resume their profit making of the
> last eight or so
[/snip)