mutual fund interest.
check the annuals. fidelity was listed as one of the top 15 mutual fund
holding as of quarter ended december 31,1995. however, they were
no where near that at the end of 1Q 1996 ending March 31.
the typical run-up you mentioned in cube was primarily due to the fact
that it was included in several newsletters (namely Cabot Newsletter) .
we all see what happened to Cabot picks.
cube has NOT proved itself when cabot recommended buying. however,
when cube started to make good earning progress. cabot recommended
selling and even shorting. (it was also listed as one of the top pick
short targets in short-sell newsletter).
i don't rely much on following technical trends all the way. i try to look
for reversal patterns. i had been shorting cube heavily when it was in
the high 60's (when the chart looks like its going to outburst after the
consolidation at the 60 level). my justification was the fact that several
trend reversal patterns were spotted and the stock was JUST WAY
TOO ahead of its fundamentals.
even though i rely my short-term trades based on technical indicators,
i believe in the psychology of the value-hunting investors. before the
downtrend reach its bottom, we will see big value investing interests. likewise,
before the downtrend started in the (70's), we saw similar value investors
step in and short the sucker.
i am not advocating short-term trading for cube. i am trying to emphasize
the strong fundamentals that would justify this value hunting long-term
investment strategy.
sun microsystem, intel corp, cisco kid, oracle, and u.s. robotics all had
some sort of downtrend movements due to the fact that the stocks
ran ahead of their prospects. however, in the long run, the price will
go up as the financials prove itself. |
