Tags: High-Tech | Value | Takes | Trillion-Dollar | Dive | Under | Clinton-Gore

High-Tech Value Takes Trillion-Dollar Dive Under Clinton-Gore

Thursday, 02 November 2000 12:00 AM

The report by Americans for Tax Reform says that since April 1 of this year, the Nasdaq has dropped more than 1,000 points, the Technology Sector Fund of the S&P 500 has lost more than 16 points, and leading technology companies have lost more than $1 trillion.

"All these factors seem to have shaken investor confidence, not only in tech stocks, but also in Vice President Gore," says analyst Aaron Lilly, director of technology policy at ATR.

Lilly points out that the U.S. Department of Justice and the Federal Communications Commission teamed up with bureaucrats at the European Union to kill Worldcom’s proposed acquisition of Sprint, costing investors more than $100 billion.

"This marks a shift from legislation to litigation," Lilly told NewsMax.com. He cites as another example the fact that "these bureaucrats" are drawing a bead on the proposed merger between Time Warner and AOL.

The most publicized example of what Lilly calls this "interventionist" policy of the Clinton-Gore administration, of course, is the Justice Department’s effort to break up Microsoft.

"Look at what’s happened to Microsoft’s competitors," he says. "It hasn’t helped them either."

For his study, Lilly chose 12 companies: Microsoft itself plus five depending on Microsoft as a supplier and six that compete with Microsoft.

"All of these companies have faced volatility and decreasing stock prices since settlement talks broke down," the study notes.

The 12 company losers on the market are Microsoft, Dell, Gateway, Hewlett Packard, Apple, Intel, Real networks, Red Hat, VA Linus, Oracle, Novell and AOL.

In addition, the Dow and the Nasdaq have had bumpy times in the more than six-month period included in the study.

Many analysts believe the administration’s all-out assault on Microsoft and other areas of the high-tech industry has had much to do with the apparent slowdown in the economy. This, more than anything Fed Chairman Alan Greenspan has said or done, is blamed.

"The decline in the Nasdaq and the Dow could indicate a broader market retraction," the study goes on to say. But "whether coincidence or causation, there have been incredible decreases in the valuation of technology companies since the breakdown of the Microsoft settlement talks."

That is a fact that Al Gore "conveniently overlooks," added the ATR analyst.

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The report by Americans for Tax Reform says that since April 1 of this year, the Nasdaq has dropped more than 1,000 points, the Technology Sector Fund of the S&P 500 has lost more than 16 points, and leading technology companies have lost more than $1 trillion. All these...
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2000-00-02
Thursday, 02 November 2000 12:00 AM
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