All About Longer-Term Investing Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : All About Longer-Term Investing

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: ig who wrote (5)	10/24/2000 6:53:31 PM
From: irv_mermelstein	Read Replies (1) of 15

Hello IG-- I think O'Neill is right that stocks do well when they clear 52-week highs. At this point, a stock has cleared any overhead resistance and, if the stock has good fundamentals, its open field running. IBD has a daily list of stocks that have cleared 52-week highs and this is a good place to look for ideas. I would also agree that picking up stocks just because they are at historical lows is not a very good idea. The big caveat is this: if the stock has fallen because the market is overreacting to news, that is frequently a great time to pick up a stock that has good fundamentals. My best example is APEX, the predecessor to AVCT. I bought the stock at 12 (pre-split) and it took off like a rocket from there. EMC is another example. I bought it after HP terminated its contract with EMC (what could they have been thinking?) in the low 90's, two splits ago. Again, to emphasize, you have to make a judgment that the stock's fundamentals remain sound and that you are looking at inefficiency in the market insofar as how it reacted to the particular piece of news. Regards, Irv Mermelstein www.profitsovertime.com

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next