McKesson is in an industry I follow, the rest aren't. I guess I feel comfortable with health related stocks, due to my background in health industry, and with defense stocks because one big market is the federal government, and I live in that market. I could probably learn enough about the oil industry to feel comfortable, as I used to live in Louisiana.
I think the problem with drug stocks, in general, is the fear that Medicare will continue cutting reimbursements.
I guess what I think is that I would feel most comfortable buying a stock if I understood the business, and had a real reason for thinking it was undervalued.
CompUSA is in a cutthroat business, they are competing with Office Depot, Staples, Costco, and others that are not so big, at least around here. That said, they do seem to have turned around, again around here. But my guess is that the big days of buying computers is gone, pretty much everyone that wants one, has one, and the margins are getting really thin. The stock is dirt cheap, though. Wonder why?
If you feel like speculating, if Entremed (ENMD) hits, and we probably won't know until next year, it will hit really big. I think it just got ahead of itself on some recent news, I'd wait and see if it pulls back. But if it doesn't hit, your money will go down the tubes. They're a one idea company, endostatin, "cures" cancer by killing growth of new cells. The stuff works on mice.
Sorry to be so garrulous, I think I drank too much coffee. There are a lot of stocks hitting bottom, I suspect that if they don't "perform" (go up) they get dumped and the money shifted to the ever shrinking pool of stocks that do "perform." I don't know how to screen for stocks below 200 day MA, do you? |
