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Author: jesslove One star, 50 posts Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 10561  
Subject: Are we witnessing a crash? Date: 4/14/2000 11:19 PM
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I hate to be pessimistic, but I am scared that the selling has not ended--but just started. I can't imagine a herd of people buying on Monday after such a terrible day on Friday. Then to top things off, Greenspan adamantly says he is not going to help out banks, I suppose he meant increase liquidity to the market, unless there is some extreme financial crisis.

Look at Micro Strategy. About two months ago it was trading at 333 now it is trading at 35. How many years do you think it will take the investor who bought at 333 to recoup his or her investment? If the market decides to return to historically normal p.e.'s then even the greatest companies like CSCO and ORCL and SUNW may loose more than half their value.

I mean, how long should we wait for a bottom? I don't know how much longer I can take this before bailing out. I am a buy and holder but I have lost money on small cap stocks that way. I purchased TSRI at 18 and held it as it went down to 6. I has has been recording record revenues and income for two years but has not traded much higher than about 9 in the past two years. It was voted by Forbes as one of top 500 small companies in America. I think its income was up 50% or 80% percent one year and the stock price did not take off. It trades at a p.e. of about 6. I still believe in the company. That is why I am holding it. But the money that is just sitting in the stock could have been put to work somewhere else. And I will not invest more money in this stock until it shows favorable pricing action.

Am I a buy and hold coward? Or am I being reasonable for thinking about selling my high p.e., high quality stocks like amat, nvls, and csco, and keeping the money they have made me in the last 4 years?

Just a thought.


Jesslove
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