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Strategies & Market Trends : Value Investing

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To: Jurgis Bekepuris who wrote (44494)9/22/2011 9:55:25 AM
From: Sergio H  Read Replies (2) of 78666
 
Good Morning Jurgis.

Sorry for ruffling feathers. Let me be more clear as to what I am saying.

When a stock hits a 52 week low its a good opportunity to look under the hood and find out why. In the case of GLW I found fundamental reasons for concern and in the case of FWLT I did not. On the technical side, known as voodoo on this thread, let me give an example. CSCO hit a 52 week low in August but unlike GLW and FWLT the new low came on double average volume and the stock has made a nice gain since then.

finance.yahoo.com

So what I am saying is that the 52 week low is a good place to look at what's going on fundamentally and technically. John Neff a well know Value investor wrote in his book, JOHN NEFF ON INVESTMENT about his methodology for reviewing stocks hitting new 52 week lows. I'm merely adding to take a look at the volume as well when a stock hits a new low.

A good day to you.
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