31/07/2002
To paraphrase the Clash: Should I buy or should I sell now. Position wise we only have our long Abbey National position which is now above 800p. We are cash heavy and ready to pounce. No, I'm not a broker on my way to Spearmint Rhino! We will look to sell the S&P on any further bounces with a stop loss on a close above 1010. I mentioned many times these markets are still over-valued but we may have a further squeeze higher so ALWAYS stick to your stop losses. The Dollar also looks weak and a break of 1.4740 in the Swiss will have me selling dollars again to wear diamonds.
Many thanks to Frederik Altman the telecoms analyst at Hornblower Fischer for providing us with our comic interlude yesterday. On CNBC yesterday he said that Ron Sommer, the boss of Deutsche Telekom " has positioned DT well, had done a good job and that no-one else could have done a better job." Obviously Freddie boy has different criteria for judging companies than most people. If you were looking for a man who has destroyed shareholder capital so successfully then Mr. Sommer has indeed done a good job. He paid 37 billion euros for Worldstream and has accumulated debts of 67 billion euros. The share price has fallen from 60euros to 10 euros and the management are now going around like headless chickens trying to work out how to cut the debt.No need to guess who has been telling his customers to buy DT all the way down. Anyway congratulations Mr. Altman you are the first winner of our Muppett of the Month award. And being the sycophant that you are then Hornblower is certainly the correctly named company for you to work for.
Harry