l'market / RE: Metalink Response ....FYI
Waiting is probably good. Besides knowing a couple of investment advisors (fellow soccer/little league dads, members of theology study study groups, and so forth), I try to listen to Louis Rukeyser's show on PBS every week (http://www.pbs.org/mpt/rukeyser), and as much of Bob Brinker's weekend radio show (http://www.bobbrinker.com) as possible. Don't have time to read WSJ or any of that. The "pro exuberance" investment cable shows that spring up during the tech bubble have been severely criticized for not following appropriate ethical practices about revealing the connections between the stock recommendations of the "analysts" that are on the shows, and the companies themselves (much less the connections between the giant media corps that own cable and the corps being recommended). What a mess. Anyway, conventional wisdom appears to be that no on knows what the heck is going to happen to the economy in the second half of the year. They say that *eventually* there are going to be some outstanding values in tech stocks (minus the "irrational exuberance", and that long term outlook for growth of the tech sector is excellent), but predicting the bottom for the whole sector or market is obviously very tough, much less any specific stock. Obviously the idea that there is a "new economy" (tech economy) that is somehow largely independent of the "old economy" has been shown, in the wake of the idiocy and madness that led to collapse the "dot com" phenomena, to have been both a form of collective hypnosis and yet another act by cynical market exploiters (whose business practices are at best ethically questionable, and IMO, legally little more than legally sanctioned thievery) such as short sale and "pump and dump" artists. The classic source of info: http://www.morningstar.com Note: they have several links to info on the tech sector on their main page. happy investing (or not, as the case may be), ep On 4 Apr 2001, at 8:01, Boivin, Patrice J wrote: Date sent: Wed, 04 Apr 2001 08:01:09 -0800 To: Multiple recipients of list ORACLE-L [EMAIL PROTECTED] ... I thought that a bit a diversifying (investing in the U.S. as well as Canada) might not be a bad thing, esp. if solid companies are currently undervalued. I can wait though -- no rush. ... -- Please see the official ORACLE-L FAQ: http://www.orafaq.com -- Author: Eric D. Pierce INET: [EMAIL PROTECTED] Fat City Network Services-- (858) 538-5051 FAX: (858) 538-5051 San Diego, California-- Public Internet access / Mailing Lists To REMOVE yourself from this mailing list, send an E-Mail message to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB ORACLE-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing).
RE: l'market / RE: Metalink Response ....FYI
example: http://news.morningstar.com/doc/article/0,1,4382,00.html?hSection=fromAnalysts ---excerpt--- ... One Hand Washes the Other I was talking to a reporter a couple of days ago about some upcoming accounting changes that could potentially boost some companies' reported earnings by changing the way they account for merger costs. She mentioned that she'd seen a study that predicted a wave of increased merger and acquisition activity as a result of this change, since companies' earnings wouldn't be as affected by merger-related accounting charges. It turns out that this study had been done by a major investment bank--which makes more than a small amount of money from advising companies on mergers and acquisitions. By itself this wouldn't be too remarkable, since investment banks' proclivity for producing self-serving research is well known. However, there's a little bit more to the story that makes this pretty funny. First, the proposed accounting changes have to do with the way companies account for what's called "goodwill," which is the amount of the purchase price paid by an acquiring firm above and beyond the target firm's book value. This amount is generally charged off against earnings over a period of time, but the charge is purely an accounting one--it doesn't mean that the company has seen cash flow out the door. Moreover, study after study has shown that investors tend to "look through" accounting changes like this, and base their investment decision on the true economic--rather than accounting--effects of mergers. So, it seems to me that asserting that MA activity will increase just because of an accounting change isn't a tenable argument. In any case, you don't have to take my word for it--take Wall Street's. This is where things get fun. During the dot-com boom, most Wall Street analysts were adding back goodwill and other merger-related charges when making their earnings estimates, effectively saying that those noncash charges weren't very important in assessing companies' performance. (Enough analysts were doing this, in fact, that First Call starting collecting "cash earnings" estimates for a number of Internet companies.) So last year, Wall Street was saying that noncash merger charges don't really matter, and basing its estimates around this idea. Now, a respected Wall Street firm is saying that these merger charges are so darned important that companies will be more inclined to do acquisitions once the charges aren't so onerous. Cant have it both ways, folks. Either investors should pay attention to goodwill charges, or they shouldn't. Which is it? ... Pat Dorsey is director of stock analysis for Morningstar.com. He can be reached at [EMAIL PROTECTED] Pat Dorsey does not own shares in any of the stocks mentioned above. ---end--- -- Please see the official ORACLE-L FAQ: http://www.orafaq.com -- Author: Eric D. Pierce INET: [EMAIL PROTECTED] Fat City Network Services-- (858) 538-5051 FAX: (858) 538-5051 San Diego, California-- Public Internet access / Mailing Lists To REMOVE yourself from this mailing list, send an E-Mail message to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB ORACLE-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing).
RE: l'market / RE: Metalink Response ....FYI
another example: http://www.tcwgroup.com/press4.shtml - This guy was on Rukeyser's show several weeks ago, and reportedly has a knack for picking good tech stocks amidst the rubble: http://www.tcwgroup.com/bios/bickerstaff_glen.htm --- http://news.morningstar.com/news/Wire/0,1230,3664,00.html - http://quicktake.morningstar.com/Fund/Snapshot.asp?Country=USASymbol=TGCEXhsection= - http://socialize.morningstar.com/NewSocialize/asp/FullConv.asp?forumId=1100106457convId=32402 --- regards, ep -- Please see the official ORACLE-L FAQ: http://www.orafaq.com -- Author: Eric D. Pierce INET: [EMAIL PROTECTED] Fat City Network Services-- (858) 538-5051 FAX: (858) 538-5051 San Diego, California-- Public Internet access / Mailing Lists To REMOVE yourself from this mailing list, send an E-Mail message to: [EMAIL PROTECTED] (note EXACT spelling of 'ListGuru') and in the message BODY, include a line containing: UNSUB ORACLE-L (or the name of mailing list you want to be removed from). You may also send the HELP command for other information (like subscribing).
