Dont listen to the BEARS!!, page-17

Markets & SMX Guys,

I think I remember about 2.5 months ago putting a medium term target on the DOW of 7500, S&P 750 and Nasdaq 1250. Signal watch are now talking of this possibility within the next few days. No doubt we will get a short rally at this point.

This has been a great ride down - now that I am in futures. Equities have a long way to go until there is sufficient longer term value to invest. Heed Jolly and stay away.

As far as my old war horse SMX is concerned - these guys still in are in utter suspended disbelief if they believe that the emerging business climate will not affect SMX revenues. Analysts are saying 3cps earnings FY03. Yeah Yeah--this might have been possible in FY01 if DLR hadn't sold the company to Wayne Bos in exchange for virtually worthless scrip. But now - I see huge risks to achieving 3cps.

All it takes is a few slow months and a rise in bench numbers and that profit will drop from 3cps to 2cps easy. At current price of 46c that will be 23 times earnings with zero growth when the market is taking us back to 12X. That means 46c may well be 50% overvalued. The fact that the Board is using their own cash (millions of it) to buy out major shareholders 13M in the last few weeks when the market is tanking - says to me that the buyback has more to do with saving face (in keeping the price up) for McQuarie directors Cox etal than responisble use of money.

And then there is the other side when employees get little or no pay rises when they see their collegues who have just left the company getting paid up to 50% more than they were at SMX by contracting direct.....

Mmmm - seems like a lot of risk and a cliff to come.

All the best to you SMX investors - I would take what the buyback has to offer now (when they come back on the screen) coz when they go (only 14M shares yet to buy - and that may go to the big boys) the bid is going to look a little thin.

Sur`ge