I agree Mav. The last thing you need to do is buy into is a damaged sector right now. Telecom, DSL, I-net advertising, E-Commerce, E-brokers. There are a lot of very dead stocks here. Sure they may be incredible bargains. But, IMHO investing should not be a form of gambling. Any upturn will almost certainly be preceded by a fairly good period of basing unless there is some strong catalyst. There are plenty of other quality bargains that are bargains because of the lemming effect. Telecom values should not be included. However, if you are going to make some investments in that sector why not invest in stocks that relatively strong? Any bounce by the sector will be felt in these and they should continue to be less susceptible to doom and gloom. SBC, BLS, VZ, QCOM.
It seems that when things go up, value gets ignored because people want to go with momentum and when things go down value seems to get punished because people try to hold quality. I do own a couple of value mutual funds just for diversity's sake and they have held most of their value. But, I don't see why I should be buying individual stocks like this. They sucked when the market was going up and they suck when the market is going down.
In this climate, there is a very good likelihood that a company that warned in previous quarters will warn again and again and again. HLIT, UIS come to mind immediately. |
