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Gold/Mining/Energy : Strictly: Drilling and oil-field services

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To: McNabb Brothers who wrote (4815)12/11/1997 1:31:00 PM
From: Chuzzlewit  Read Replies (1) of 95453
 
Hank, I still think that reliance on T/A is akin to throwing salt over one's shoulder. As to FA, we need to clarify. Are you talking about financial analyisis, or fundamental analysis?

Financial analysis is a very potent tool for understanding the dynamics of a business. It will also tell you a lot about the mind set of management. It's major use is to weed out financially weak companies from consideration as investment vehicles. It will not predict the future.

Fundamental analyis is significantly broader in scope because it subsumes forecasting both industry-wide trends, and company-specific performance. The more specific it becomes, the worse it's performance becomes. And it's ability to predict the stock market is horrible!

I'm beginning to feel as if I'm the only one on this thread who follows MPT, and I'm getting lonely!

Regards,

Paul
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