Are you afraid to buy stocks in the roller-coaster Nasdaq index? Look closely and you may find some values.
"The Nasdaq index sells at 80 times estimated year 2000 earnings," says Forbes, April 17, "but some of its stocks sell for a tenth of that."
The article includes, under "Wall Street's Outcasts": Burlington Coat Factory Warehouse (apparel stores), Detroit Diesel Corp. (auto parts), Haggar Corp. (apparel), and Neiman Marcus Group (department stores). These sell for less than 10 times estimated 2000 earnings.
GOOD ADVICE: "Last Tuesday's sickening volatility shook up some investors so much that they're now looking at things they recently shunned: earnings, sales growth and cash flow. No matter what happens in Wall Street, investors should look more at companies' bottom lines than at stock gyrations." (Barron's)
MONEY MATTERS: "Having weathered several corrections this year, we continue to emphasize holding sufficient cash to take advantage of each retreat." (Richard Geist's "Strategic Investing")
"When Abby Joseph Cohen recommended that investors lower technology positions, it was like hearing the pilot announce, `Please put seatbacks and tray tables in upright positions as we begin our final descent.'" (Smart Money)
"There are plenty of smaller-cap stocks worth selling short. The Internet consulting business will soon become a highly competitive, low-margin business." (William Lyons, "Short on Value")
"When a company reports higher first-quarter earnings, chances are five to one it will also increase profits in the second quarter." ("2000 Stock Trader's Almanac")