I have mentioned my some of my selections on this thread from time to time but only when I could see a value component to them. Otherwise it would seem utterly inappropriate for this thread. I recently mentioned Alliance Semiconductor. In the past I mentioned ORTL, MRVC, and unfortunately THQI, which becomes more of a value stock everyday it seems. I believe that what we are seeing now is the cannibalization of value portfolios by investors trying to improve their returns by shifting from value to technology, the perception being that as long as the fed raises interest rates all the interest sensitive business suffer- financials, home builders, retailers, consumer non durables,
while the techs do not. I still see all the trends pointing away from these stocks, and as I said before there is not the dividend protection there once was- corporate executives love the concept of buy backs instead, so expect to see more of those as the price declines. I have a small position in CMH and a larger position in SNH both down significantly.
I am watching those and also USU, to see if that one ever bottoms, but in the meantime the IPO market continues to rock and when you get 100% appreciation in one day or more it will continue to attract lots of attention. I personally am looking for GE to keep coming down, just can't see a finance company going for 40 times earnings. I also do not understand the concept of paying 2-3 times growth for any company. |
