| | Al Frank of the Prudent Speculator who has recently recommended MTSN said the following in today's market commentary:
<<<Let me recall some seemingly strange patterns in the stock market. One that comes to mind is the action of Ford (F) stock in 1980-83. (I’m on the road now and do not have the exact facts at hand.) As I recall, Ford shares doubled over those three years in which Ford had no profits. Reason? The “unseen hand in the market” anticipates the likelihood of future growth and profits, anywhere from six months to some years in advance. We have seen this phenomenon many times, when in the midst of a recession and economic strain the markets start advancing (as they will again this year). Also, even when things (the economy, peace, prosperity and the markets) look terrific, stocks begin selling off as they have since last March (and before), probably reaching a climax this March. Then, oddly the cycle begins again even as many people are disgusted with stocks and the markets begin to advance. First come the “bottom fishers’ and the “big-bargain hunters” of whom we’ve seen at work during recent daily rallies, although not without volatility and some backing and filling. Then some technicians types begin buying when they are convinced we are in a sustainable up trend, a process that may have a few “false starts.” Finally, the novices and momentum players become buyers who are almost willing to pay any price to buy stocks because they’ve missed so much of the obvious trend already.>>
I think this pretty well sums things up as to where we are with the chip and chip equipment stocks at this time. Phil |
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