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Technology Stocks : Spyglass

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To: Lane Hall-Witt who wrote (1261)11/16/1999 4:08:00 PM
From: Art Bechhoefer   of 1412
 
"A problem with using fundamental analysis to be pro-active, though, is that markets often are highly inefficient and require a long time to reward business value with market value."

The other side of the coin is that the very inefficiency you refer to (which I agree on as well) gives the fundamental analyst the right signal to buy or sell. SPYG was a good example when it was sitting there around 10-11. An even better example was SanDisk back in October, 1998, at which point the shares were down near 6, even though $5 per share was cash! No wonder the stock went over 90 in less than a year. A fundamental analyst's dream!
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