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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (13924)2/14/2002 6:09:13 PM
From: Dale Baker  Read Replies (1) of 78646
 
And then there are the Dale Baker types who purposefully monitor those upward prices and use them as a signal to get in. Sometimes that works (food stocks, home mortgage co's, recently).

FWIW, I use price breakouts as a shopping list, then apply value criteria before I buy. Often I see stocks on the new high list day after day but I can't jump in because I don't like paying 5x sales or 4x book or a PE over 50 or whatever.

My consternation comes when those "overvalued" stocks keep going up.

;<)

The risk is buying breakouts in a stock before it corrects. But the payoffs tend to pay pretty well.
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