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Strategies & Market Trends : Value Investing

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To: Paul Senior who wrote (25833)1/27/2007 9:08:24 AM
From: anializer  Read Replies (1) of 78740
 
Like Carl said, most investors would be losers if they employed the IBD strategy to a T. Sure, a glance at the IBD 100 and 100 charts would make one feel incompetent, but they are resultant charts based on prior action, not hand picked stocks. The Cup and Handle w/the CANSLIM method has only been useful when a Value stock exhibits those chart pattern characteristics. Buying stocks at 50 to 100 PE ratios 20X book just because they have been going up in the past will almost always result in damage. That said, the paper has some value for its database and wide coverage of stocks. The Wall St. Journal in turn as a daily has too much advertising and not enough stock meat. More often than not, an IBD article published on a stock is known as the kiss of death quite accurately.
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