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Technology Stocks : Novell (NOVL) dirt cheap, good buy?

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To: jim A who wrote (9006)3/6/1997 4:34:00 PM
From: Reginald Middleton   of 42771
 
With all due respect,you don't jump in because a stock doesn't go down in price. You ease in when a stock has a good business, weak compeition and/or is able to erect significant barriers to entry to their current markets. This all has to occur at a inexpensive price. Price is judged by a multiple of future cash flows discounted to todays value using the company's oppurtunity cost of capital. That is how you decide if it is time to get into a stock. BTW, you never "jump" in. Even the worlds richest investors don't jump in (Buffet, Soros, etc.) they accumulate (dollar cost average). Those that jump just might fall.
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