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Biotech / Medical : Chromatics Color Sciences International. Inc; CCSI
CCSI 24.53-1.8%Nov 7 9:30 AM EST

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To: David S. who wrote (884)1/25/1998 11:00:00 PM
From: blake1  Read Replies (1) of 5736
 
A truer statement could not have been made.

As most folks know at some point, the reason you should go long a stock is because you believe the business fundamentals of a company suggest that the company's stock price does not accurately reflect the higher discounted future cash flow value predicted from the company's operations. The opposite is true for someone shorting a stock (that is, the DCF predicted is less than the market is anticipating, as reflected in a too high current stock price).

Charting (or using purely technical analysis as a basis for investing) may work for some people sometimes. I believe however that you are right David (at least this time) that fundamental research should be the critical foundation for those that do not want to die young (in more ways than one) from investing. This approach will generally help in eliminating fast moving momentum stocks and the use of options as a person's chief investment tools. Keep up the good work David in helping educate, rather than ridiculing, possibly less-informed stock followers.
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