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Strategies & Market Trends : ahhaha's ahs

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To: ahhaha who wrote (4776)7/11/2002 10:41:53 PM
From: ahhahaRead Replies (2) of 24758
 
The issue is whether companies like SCMR, JDSU, NUFO, et al, are ready to be bought. I don't believe there's anyone around who thinks they are. What has that got to do with making money with investment?

It is precisely that these companies are so avoided that a prudent investor might want to buy a little of them. If it rises, you buy more. You have to buy stocks when they're low and out of favor.

How many people were doing that today? Not many, if any. Thus, stocks are out of favor and so are optical plays.

Maybe there's a better time to buy the optical plays. One idea is when they make a volume break out on news. The wrong way to handle such a move is to wait for a pullback. You just go in and buy. Money managers like the one who deeno posted try to be clever and wait for things to get cheap again. They think they can coordinate "channel checks" with proper entry. They never own except at much higher prices way down stream.

CSCO is in that category now. Who wants to buy it? Not many. The "channel checks" aren't strong enough. It's tech. It's big. And, Chambers is surely a crook according to Comrade Gephardt.
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