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Technology Stocks : Cisco Systems, Inc. (CSCO)
CSCO 74.59+0.3%Jan 23 9:30 AM EST

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To: JeffT who wrote (57974)2/25/2002 6:19:56 PM
From: RetiredNow  Read Replies (1) of 77400
 
Sure. Mostly, I did the DCF analysis a long time ago when I was still wanting to hold individual stocks long term. The other reason was as a response to one of John Shannon's posts about fair value. I think you can use it to mitigate risk on short term trades in the sense that if the price goes below the DCF valuation, then it's a pretty good bet that you will eventually get your money back, if the thing tanks and ruins your short term trade. Also, keep in mind that I am the worst short term trader of all time. I am pretty bad at technical analysis. Instead, the way I do it is figure out what is the worst case scenario price and then buy it when it gets there and sell on a pop. I did that after 9/11, because it went to $11 at the low. I figured that was an easy 50%. Instead, I made more like 80% in a short period of time. It's just luck. A

Anyway, I consider short term trading gambling, so don't place too much stock in my reasoning behind how I pick my entry and exit points. The tea leaf readers on this thread could probably give you more info on their logic. However, I think my logic behind long term holdings is a little more sound. I think Cisco is worthy of a long term holding for those that don't mind the volatility. Good luck!
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