RE: [CANSLIM] Worley's Weekend Weeview - dedicated to Cassie

From: "Fred Richards" <adrich@gte.net>
Subject: RE: [CANSLIM] Worley's Weekend Weeview - dedicated to Cassie
Date: Sun, 17 Mar 2002 09:45:32 -0600

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Let me try to slip in.

One must start from viewing the perspective and agenda of the sources.

Greenspan is political and monetary focused.  Wall Street economists and
CNBC cheerleaders do not have a significant financial stake other than
getting a pay check and hence, are probably sales oriented.

The CEO's must view the future from the aspect of their own wallets and
being able to survive in their jobs if they make bad decisions.

For my money, the CEO's are probably closer to knowing the truth than any of
the others because their necks are on the chopping block.  Hence, don't get
your hopes up too high for a recovery.  In fact, the reluctance to raise
money is not positive.

Several CEO's and CFO's I have talked too lately are more interested in
cutting their debt/equity ratios rather than increasing them. And they are
doing this by reducing staff, renegotiating purchase and real-estate costs
and attempting to increase efficiency.  Many are also eliminating marginal
products and divisions.  "Lean and mean" is the theme.

Doesn't bode well for a capital spending binge.

Be very interesting to see the 1st Q earnings reports in a few weeks.

Fred Richards

- -----Original Message-----
From: owner-canslim@lists.xmission.com
[mailto:owner-canslim@lists.xmission.com]On Behalf Of Charles Bentley
Sent: Saturday, March 16, 2002 4:35 PM
To: canslim@lists.xmission.com
Cc: gandrew@pacbell.net; Laura Shuford
Subject: Re: [CANSLIM] Worley's Weekend Weeview - dedicated to Cassie


Tom,

Since you are now providing an Economic picture in your weekly
analysis, perhaps you can answer a question I have.

In listening to the remarks of Bill Gates, Mr. Buffet and Mr Imelt
from GE among others, they do not see a robust rebound coming
and are not spending money gearing up for it. In addition, corporate
insider activity (called smart money) from what I've been able to find
out, is selling. They're selling personal stock and selling stock for
the company to raise money. In addition, in an unprecidented time
of low interest rates, they arn't raising money. This doesn't sound
like they're preparing for an economic rebound.

On the other hand the financial markets are predicting a robust
rebound (as you stated in your recent newsletter).

Now here's my confusion. The Analysists are looking at the
markets as self validating. Meaning that the higher that the market
goes, the more likely it is that consumer spending will pickup and
force the corporations to borrow and expand. The executives from
many companies are telling us that they don't see positive signs for
doing this. Mr Greenspans response about a question concerning
this last week at the Senate Banking Committee was that perhaps
Mr. Gates and Mr. Imelt are too close to be able to see the broad
picture. EXCUSE ME? Am I just dense here? To me that doesn't
make any sense at all. I doubt that Mr Gates and Mr Imelt got
where they are without being able to see the broad picture.

Please help me......

=====================================
Third Coast Telecom        (713) 827-8133
5644 Westheimer, #222
Houston, TX 77056

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