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John Edwards Chat on AOL

<I>TSC's</I> markets editor chats about IPOs, Asia, options and more.

John J. Edwards III chatted on AOL MarketTalk on June 7. AOL's MarketTalk is hosted by Sage Online (Keyword: PF Live).

SageCrystl:

Sage is proud to introduce Mr. John Edwards, Market Editor for

TheStreet.Com.

SageCrystl:

Thanks for joining us today John.

JEdwards:

Hi, thanks for having me.

Question:

Now that peace seems to be at hand, do you see any stocks or world markets that will benefit?

JEdwards:

Peace is certainly a benefit for markets in general. As the Kosovo conflict ran the risk of widening and eventually sapping a lot of resources in Europe and elsewhere.

JEdwards:

I would say that the most direct beneficiaries are certainly major European companies which will see one area of great uncertainty removed.

Question:

Your opinion on CNCX?

JEdwards:

I can't really give opinions on individual stocks.

Question:

The IPO market has really take a sour turn. Is this a sign of the end of the Internet hooplah?

JEdwards:

It could be a sign of a new stage in which investors examine Internet stocks more soberly.

Question:

What is Cramer like to work for?

JEdwards:

He's a fine person, but I would point out that I don't really work for him in any direct way. He's a director of the company and a columnist, but he plays no editorial oversight role.

Question:

Where do you see the most value in the market at this time?

JEdwards:

TheStreet Recommends

I would say that overall many of the stocks in small cap sector continue to be beaten down relative to the larger stocks that have been the market leaders, but I would caution investors that just because a stock represents attractive value does not mean that it will sign favor with the market in this environment.

Question:

Is the Asian rebound for real?

JEdwards:

It's still too early to say whether the overall rebound in Asia will build from its current levels. We have probably seen the bottom in the region, but Japan and other Asian nations still have much work to do to revitalize their economies.

Question:

What is an option?

JEdwards:

An option gives an investor the right to buy a stock for a certain price on a certain date.

Question:

Why is the summer traditionally a bad season for the market?

JEdwards:

Much of that has to do with the decline in volume that we often see in the summer months.

JEdwards:

But, its worth pointing out that some areas of the market such as technology aren't usually terribly damaged by the summer effect and we often see isolated rallies in the light volume summer months.

Question:

Why would a company remain private as opposed to coming public?

JEdwards:

Many companies feel that they are doing a good enough job of raising the capital they need without going public and a lot of managers don't want the hassels of being beholding to the public share holders and having to meet lifting requirements and file with the SEC and so on.

Question:

What do companies do with stock that they buyback

JEdwards:

Generally companies just place those shares into what's called the company treasury and stock buy backs simply serve to reduce the number of shares in the public float, thus making the publicly available shares a little bit more scarce.

SageCrystl:

Thanks again for joining us today John.

SagePSU:

Thanks John, always good to hear from you.

JEdwards:

Thanks very much, it's great to be here.