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Strategies & Market Trends : Tech Stock Options

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To: Autumn Henry who wrote (27958)11/6/1997 10:12:00 PM
From: Suresh  Read Replies (1) of 58727
 
Autumn,

I am not going to defend the analyst's. But there are some honest analysts... and there are others. However, I watch for the following (if you follow IBD.. it was discussed in one of the recent investor corners);

a) Point of upgrade: Is it coming when the stock is coming out of a base ? How was the accumulation/distribution. What was the reaction of the upgrade by the street ? After all if you are in the right boat you benefit from their word. (A glass of milk is half empty/half full situation)

I respect the analyst who upgrades when the stock is 5% or less from the base. I like it when they attach a valid reason (increase in earnings estimate etc.)

b) Point of downgrade: Is it coming after a deep sell off ? If so, I would not worry about it.

c) If you read the street.com, Cramer had an article discussing various analysts and how he rates them.

d) Better watch out for axe's (Jim Cramer's word) in a sector. One has to respect a guy like Tom Kurlak who can carry/push MU from low 20's to high 60's.

e) If the upgrade/downgrade is coming from the market makers firm for a small cap stock... get out of their way. It is a no win situation. Swimming against a shark or with a shark in a small pool is not worth the risk.

Regards,

Suresh
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