How about Tom Dorsey from Dorsey, Wright on 'Buy, Sell, and Hold' or whatever they call it these days?
Here's a guy who is so tuned in to TA and nothing else, it's pathetic. He was recommending C-Cube, Fore, and Digital, all based on the fact that their stock prices have declined mightily during this year's bull run despite their "solid fundamentals." After Dorsey plugged his picks, one caller asked "But about the class action suit against Fore Systems?" Dorsey's response: I don't know anything about that, so you'll have to do your digging by yourself, but I know it's a great stock because its down and has great fundamentals.
Hello, but how the heck does Dorsey define fundamentals? It's a total joke that one would say that Digital has "great fundamentals."
Another caller asked about Monsanto. Dorsey said this is the time to jump on because of, you guessed it, a recent price decline. Kevin McCullough brought up that there was notable news on the co. today re: the spin-off of its chemical business, but Dorsey's response was along the lines of "who cares?"
CNBC needs to do a little better than a guy like this during a segment when callers are asking for advise. The avg. investor would stand to get burned really badly listening to advice so limited in scope that you wonder how many times Dorsey bothers to pull his head out of the sand. While I do agree that TA has its uses, the successful long-term, individual investor is just that, not a trader or a market-timer. For somebody to be so callous to fundamental analysis is very laughable. |
