INTEL- Money Making Option Ideas for Small Investors Message Board

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Technology Stocks : INTEL- Money Making Option Ideas for Small Investors

INTC 40.16

-2.9%

Oct 30 3:59 PM EDT

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To: tonyt who wrote (164)	7/20/1997 2:18:00 AM
From: IQBAL LATIF	of 201

You must have noticed SOX & NAZ drop and its impact on DJ - S&P & other indexes.Market cap of some of the smaller INDEXES is far too insignificant to be able to resist a reversal or change in direction. In recent past we had seen DOW dropping significantly lower like 200 points in a day without any or little impact on heavy cap indexes like SOX however last night 'petite' carnage has not spared any index even bio-techs were hit. This market is a slave to big caps momentum if that momentum reaches a toppish level to 24 p/e from 22 p/e I think common sense dictates that it would be prudent to stop looking at market as whole and start concentrating on 'picking' individual stocks which are trading at a huge discount to the market like IBM @ 17.3 p/e (104 1/2$), last night although I was worried that IBM may give up some of the gains I was happy to see it close higher negating the market trend. Every index has some of individual stocks which are overlooked by the markets for unknown peculiar reasons. My picks and activity is concentrated on identifyiing such stocks. These stocks will resist the trend either on a discounted p/e (IBM) or year out earnings growth is not fully appreciated in the price i.e. apparently they look pricey with high p/e's but their high p/e is perfectly justfiable based on forward earnings growth projections. Going forward, I see lines clearly been drawn between laggards and winners anyone who is a part of winners will do very fine even in face of a single day 130 points drop.It was this phenomenon I discovered with IBM when I called for going long nearly 12days back. I certainly believe in 'sympathy selling' but within these one day declines you will probably see some good values. It is most likely that this market will correct avoiding established menu of a 'lot stock and barrel' drop probably we would see shedding of fats with winners remaning stable or even moving forward. Watch for stocks like ASND COMS CSCO INTC and you will notice anyone picking these in this phase of correction will still make money. I feel we are going to see 'divergence' within individual sector components and rotation of big money is entirely possible from momentum stocks in so far lagging stocks like IBM where valuations are unjustfiably low,here the only only caveat being if they beat analyst expectations and the whisper numbers. \| Previous \| Next \| Respond \| \| View SubjectMarks \| Bookmark this Subject \| Return to Market Trends and Strategies One or more words separated by spaces: Subject Titles Only Full-Text Messages with Links Send questions and feedback to webmistress@techstocks.com To link to this reply, use the following Location: Terms of Use

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