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Strategies & Market Trends : Ride the Tiger with CD

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To: 4C who wrote (37657)12/2/2005 11:25:17 AM
From: Julian Augustus  Read Replies (1) of 313121
 
You are right: an undervalued company is not necessarily a good buy, because it can remain undervalued for a long long time. Nevertheless, sometimes the promise in buying a dormant undervalued stock pays off, spectacularly. Check a long-term chart for SWG.T. It sat around $2.00 for the longest time while knowledgeable analysts like Claude Cormier kept pounding the table about how undervalued it was. When it finally moved, it shot up like a canon, going from $2 to $17 in a couple of months, if I remember correctly.
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