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Strategies & Market Trends : Stock Attack II - A Complete Analysis

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To: Stephen who wrote (21633)10/14/2001 11:38:55 PM
From: Cymeed  Read Replies (2) of 52237
 
Stephen, as to the comparison of April's rally versus current one, I see two differences here.

1). Stock prices are much cheaper currently;
2). Interest rate is much lower currently.

I did a Discounted Cash Flow analysis on Wal Mart. This appear-to-be stalmart may be worth of $70 per share at the 4.5~4.6% discount rate and it is currently trading at around $53. The current rally seems to have some value content in it.

The similarity is, in both periods during both rallies, people seem to bet the economic recovery is only two quarters away.

Can it be right this time and wrong in April? I don't know. I am very much long stocks and wary of this as every other longs out there.
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