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Strategies & Market Trends : Zeev's Turnips - No Politics

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To: TREND1 who wrote (47127)4/5/2002 12:33:34 AM
From: Sam Raven  Read Replies (2) of 99280
 
In just the last few weeks I read somewhere about research which showed that out of all the stocks that drop into the 10 dollar range, only 3% of them ever go back over...did anyone else read that somewhere? I'd sure like to look into that more, cause it is hard to believe.

However, we don't even screen for stocks under 10 for breakouts, and under 12 otherwise, because experience has had its influence. But you always hear about these great recovery stocks that do come back, and looking at some of the great companies with stocks under 10 now, it is hard to imagine some of those not coming back. If that research is correct, the risk is too high to trade long those stocks under 10, and that is where a list of shorts should come from.

Sam
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