David said:
From: "optikl" <optikl@com_invalid_cast.net>
| If you look at the financials of both companies, the key ratios look
| pretty good. But, in today's economy, it's not at all unusual for large
| mergers to be viewed by Wall Street with a "wait/see" attitude. Stocks
| can go into the toilet if revenues and earnings don't keep pace with
| foretasted inflation. This last sentence from the article you link says
| it all:
|
| "The whole security space is running into its own resistance because of
| larger macro issues, such as the potential for the economy to fall into
| a recession," Williams said. "Investors increasingly are building a
| recessionary discount into their risk profiles =3F that is part of the
| reason the [Symantec-Veritas] deal was done in the first place."
|
| IT is one of *the* first organizations within a company to be affected
| by cost-cutting when Wall Street's expectations aren't met.
|
| Timing is everything.
One could easily see this period as a "buy time".
As long as you're not looking for a quick turn-over. I personally think
there is some more softening coming in the tech sector, before things
bottom out. Then again, it's all about investor confidence, so I hope
investors start buying.
Yes IF the merger works out and the company does not suffer a loss of
management focus. There are a thousand decisions to be make and all of
them carry a degree of risk. But if it works out as it probably will
then yes this is the time to buy.
On the other hand many on the street have AOL and Time-Warner in the
back of their minds. But all in all the value should be there over
time. That is what matters.
Tech will soften but from these levels I would feel comfortable with
the risk long term.
Specific companies aside, the market is currently right for increasing your
portfolio. When the housing speculation bubble pops, fast money will move
back into the stock market. Also when Social Security funds are diverted
into the market it will revive our stock market economic fever, might create
a buying frenzy, 20,000 or higher)
I feel you need to be invested before the diversion or housing speculation
market takes a tumble, it is a smart equity move now, investment earning are
taxed at 15% not 36% like a decent two person income. I believe the current
administration promised the social security funds to Wall Street, and that
is a much better bet, than placing money in the hands of a Vegas card
counter.
When the social security funds move to wall street, that where you should be
employed. Investment will be the bright spot for the hungry workers, in an
industry that is going to rock an roll for several years after the largest
transfer of equity this county has experienced.
JR the postman
