Show me where Lynch said that Katherine: I have all his books and never read any such thing. He did say that just because a stock goes down, doesn't mean that it can't go lower. But then, what has that to do with Tellabs???
What Peter Lynch did say was that you should hold onto a stock as long as the fundamentals remain solid.
And he also said: "Earnings drive the market"---- I am sure even you Katherine have seen Lynch say that on TV.
Now, considering that Tlabs has 31 straight quarters of "up" earnings Katherine----what do you think Lynch's real position would be----to clip and run early. Another of your favorites O'Neill said that one of the worst mistakes most investors make is to sell their winners and keep their losers. O'Neill also said that another major error was for investors to sell a great stock too early. I think you are violating both of their rules Katherine by suggesting selling to others; especially if you really are Long (which I doubt) and a long term player. If so, why are you concerned, you are on a solid base.
Another principle of O'Neill is to set a "stop/loss" at about 8% maximum, below your entry point into a stock. If anyone has entered recently since the split, Tlabs hasn't gone down 8%. So there would be no reason for taking profits now----especially when its historically making another run due north.
If someone wants to lock in profits, they could set a stop/loss underneath the stock --- but then be prepared to miss any future up move----like the 4 points we would have missed if we had followed your advice Katherine.
Meantime, Tellabs is looking great at this time----the MM is running it up precisely at the right time----prior to mutual funds getting a "fresh load" of money for the new month, and also while their is still negative sentiment due to the upcoming interest rate hike on June 30th-----the mm is very smart----running up the price while many sit on the sidelines or are so scarred from the recent plunges that they have been convinced to "sit out" until the market looks good again.
The time to buy is when there is "blood in the streets" and I will probably sell if Katherine ever says that she really feels comfortable in this stock. :-) |
