Overheard On The Street
Here’s what they’re saying at mid-day:
Buzzy Geduld, President, Herzog Heine
Geduld: "Stocks are not feeling good today. Technology stocks are still
getting hammered, and these are very treacherous times. We’re hoping for a
bottom somewhere, but at the moment stocks are still for sale and remaining
under pressure."
Scott Cummings, General Partner, Agile
Asset Management: "I believe that the market is finally getting around to
re-pricing the balance of the high-flying technology stocks. This re-pricing is
best evident in the way in which they are treating Verisign
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PowerRating) today
after some excellent quarterly results. The optic group, which has been so
strong, is finally getting its time in the barrel along with some awfully strong
companies like Juniper
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PowerRating) and others.
"These stocks have been overvalued, have been known to be overvalued,
and now finally are getting re-priced. The question which remains, which no one
knows, is what will be the new benchmark, the new price range, the appropriate
valuation, for some of these very rapidly growing, next generation Internet
infrastructure plays which clearly are growing at double-digit sequential rates.
"They deserve premium multiples, but we don’t know what the appropriate
premium is anymore. So, the better part of valor is that you can
dollar-cost-average in this Nasdaq until we achieve a bottom, or you can move to
the sidelines and wait for the market to tell you it’s bottomed. But for now, I
don’t think we’re done. I wouldn’t be surprised if we don’t continue to go lower
and create some new lows in the Nasdaq."