Re: Paper money

Roy T. Fielding (fielding@kiwi.ICS.UCI.EDU)
Tue, 09 Nov 1999 02:38:11 -0800

>So if investors don't go in for knee-jerk reactions, then where is the
>Y2K stock crash supposed to come from??? @:-0

Just in the stock I own. Take a look at what happened to Inacom (ICO)
two weeks ago when the Chairman mentioned an obvious revenue slowdown
due to companies restricting purchases between now and next quarter.
A $6 billion company (that's in annual revenue) with a market cap
of only $230 million, and a stock price one-fifth of the book value,
based on news of a single-quarter slowdown. Go figure.

Another good example: Dave & Busters (DAB) has lost 2/3 of its value
since it announced it *only* had a 2nd quarter revenue increase of 42%
instead of the expected 44% increase. So, in spite of having a truly
amazing cash flow and no significant debt, they are valued less than
most pre-IPO websites with zero revenue and massive debt. Huh?

The stock market right now is nothing but knee-jerk reactions.