Ram,
so from viewing your history with ALSC, you seem to have been in the right place at the right time.
Read, what robert Wallberg from briefing.com writes about that:
"Mo Better This won't come as a shock to many of you, but the action remains in the momentum stocks... Despite
the fact that many of the momentum stocks have totally disconnected from their fundamentals, traders continue to
chase the stocks higher... One reason is the time of year... Money managers don't want to be left holding much cash
at the end of a record year... Consequently, they are spending their cash like a teenager at a video arcade... And
now is not the time to buy depressed stocks... No sir... Don't want to go to investors with a year/qtr end glossy
showing a portfolio filled with stocks that ended the year with losses... Better to look like a hero by dressing up the
portfolio with the likes of Qualcomm (QCOM) 497 +30 3/16, Commerce One (CMRC) 474 5/8 +51 5/8, Internet Capital Group (ICGE) 170 3/4 +27 1/8, CMGI (CMGI) 259 5/16 +37 1/8, Yahoo! (YHOO) 399 +29 1/2, DoubleClick (DCLK) 217 1/8 +15 3/4, Liberate Tech (LBRT) 236 1/2 +20 1/2, JDS/Uniphase (JDSU) 296 1/4 +14, Inktomi (INKT) 176 11/16 +13 11/16 and PMC-Sierra (PMCS) 132 3/4 +4 3/8...
At this point price and value are secondary to desire for ownership...
On the flip side of this equation are the laggards... If you own them and they have fallen in recent weeks without much justification (such as earnings warnings), the reason is simply wrong place, wrong time...
With the market having cleared the Fed hurdle with ease, the current dynamic should remain in place through year-end...
However, come first part of next year look for the pendulum to swing back in favor of value - at least for a while. --
RW"
Someone else wrote before, "Go momentum, value is for suckers!"
Well, I say, the value inside ALSC, together with its neat management modell to attract sarce egineering brains via seeding money into startup against shares like a venture capitalist to further develop its memory business into telecom, will be uncovered and payed fore sometime. Then ALSC will be a momentum stock, unheard of so far.
The way to make money is to get in an undiscovered good prospect stock early before the Momentum-crowd does.
Sure I own CMGI and most of the others. But right now, I just let the profits run. When the (always unexpected) unexpectet fall comes, that fall out of stocks into cash will be fast and deep. I know it. Still, after such nice gains, I can accomodate to a 15 -30% drop and leave then, watch them fall like kinifes in gravity to - 50 or -70%, as momentum stocks usually crash, still feel fine.
ASLC will not drop that much in a crash. But when it will be discovered: I am in at a very reasonable low price, below book value, before the crowd. That counts.
Lutz
So I am quit |
