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Strategies & Market Trends : Gorilla and King Portfolio Candidates

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To: Uncle Frank who wrote (50883)4/2/2002 4:27:56 PM
From: Hector  Read Replies (4) of 54805
 
Uncle Frank,

The criteria I refer to is not yours, but mine. It's a company that has real products and earnings, but whose stock price becomes divorced from reality primarily because of a phenomenom known as momentum trading. Management executes well, but at some point because of reality, it can no longer feed the press release machine fast enough to satisfy these traders. At that point, the price falls rapidly as these guys move on to the next vehicle for their trading.

Whether your picks are gorillas or kings doesn't interest me. What I noticed is that they include SEBL, EMC, GMST, QCOM, JDSU, BRCD, NTAP all of which at one time or another, have been the notorious favorites of the momo crowd.

Many people have lost huge sums of money because of wishful thinking and an unfailing belief in stocks like these. I think it's important to have opposing viewpoints on threads like yours.

Peoplesoft's decline today is a perfect example of what I'm talking about.
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