Gorilla and King Portfolio Candidates Message Board

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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Stock Farmer who wrote (46135)	9/3/2001 5:01:23 PM
From: hueyone	Read Replies (1) of 54805

Way back when everyone was exclaiming how expensive their stocks were. Wasn't there still an expectation of long term gain in excess of alternative investments? In which case, the stocks were viewed as undervalued. Good point John. It was argued on a regular basis that Gorillas were likely to be undervalued in the long term even though some members conceded they were very expensive in the short term. The long term is/was supposed to make all well. The general response to those arguing against the proposition that Gorillas were undervalued in the long run was/is: Since we still have not experienced a "long term" cycle that incorporates the recent down cycle, the proposition that Gorillas are undervalued in the long run still has not been disproven. The other patented response was/is that those paying close attention to current market valuation of their company and basing their purchase on valuation information, were practicing "market timing"--- which has been discredited in many academic studies. However, in my humble opinion, the market timing that has been discredited in many academic studies has much to do with predicting short term stock price movements and very little to do with valuing a business. Best, Huey P.S. By the way, I am not aware of what current academic studies indicate regarding traders' ability to predict short term stock price movements, so my statement about many academic studies discrediting market timing applies to 20 year old studies. I don't mean to insult any technical traders who are now successfully plying their trade. Certainly knowledge in the technical trading side of things has grown tremendously in the last twenty years. I still don't understand any of it though and likely never will. <gg>

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