Note: Chanos is primarily a short-seller, meaning he profits when stock prices fall. Short sellers borrow stock and sell it immediately, hoping to cover the loan by buying back shares at a lower price, and pocketing the difference between their selling and repurchase prices. So keep in mind that stocks named below are ones where Chanos expects a price decline:

Yahoo!

"Yahoo, along with eBay and Amazon has been deemed one of the survivors in the internet business. But one of our concerns we had with Yahoo several months ago is still a concern -- its accounting. Yahoo is one of the most lavish issuers of stock options in corporate America as a percent of overall business. I mentioned (on the June 28 broadcast) that Yahoo's stock option issuance expense was equal to their revenues.(Ed. note: Chanos on June 28 actually noted, correctly, that the estimated cost of Yahoo's stock options exceeded the company's annual revenue)

"On top of that, Yahoo's revenue after dropping -- and rebounding recently -- will start to slow down. You are going to see a company that is going to look more like a traditional media company. If you adjust for the expense, this is a company that is valued very, very richly for what it is. It's not going to go bust like many of the dot-com bretheren, but is a $7 or $8 stock trading at $18."

United Health

"An area that's been very, very controversial is the health care. Investors are looking in the rearview mirror as it relates to health care stocks -- looking at the sector's tremendous growth as others have stumbled -- and saying this is a conservative, safe place to put equity money. We couldn't disagree more.

"The storm clouds are on the horizon for health care stocks going into 2003-2004. Among other things, we are very negative on the middlemen, HMOs like United Health Care, Coventry Health.

"I think that what we're seeing is an area that is going to be under increasing regulation by the government, increasing scrutiny, and I think it's going to be a very, very easy area for politicians to point to corporate malfeasance and win kudos, because they really can't rein in the spending. That's the problem."

Coventry Health

Blockbuster

"We're going to take another stab at the video rental companies. I was shorting Blockbuster back in the early 1990s, before viacom bought them, but we think the video entertainment companies, Blockbuster and Hollywood Entertainment, are in quite a bit of trouble going forward. We are calling it the perfect video storm.

"Video-on-demand in some urban areas is a reality. I can rent movies, fast forward them on my cable system.

"In addition, movies are illegally being downloaded over the Internet. We know what that did to the music industry. It's illegal; it's happening anyway.

"Finally we think the advent of the DVD purchase market is really hurting the video rental business. I know in our family alone we don't rent movies anymore; typically, we purchase them for $12 or $14."

Hollywood Entertainment