wtd, I found the response to your question:
<<> What are the chances LGND is ready for a Dell-like move?
If you're referring to LGND going up 400% in a year, it will never happen. Don't get
greedy with LGND and you can make a ton of money. Sell into strenght, buy into
weakness.>>
one of the most bizarre yet. Some posters like to use 20/20 hindsight to verify advise and sometimes investors are simply told to "look" at a move while it's happening.
I don't follow DELL, but I took a look at its chart and I assume that the 400% gain refers to DELL moving from about $35 in Feb '97 to $130 in Feb '98. Of course looking at moves AFTER they happen is rather easy, and it's not that hard to see that LGND has already made a similar move, going from $5.50 in May '95 to $19.75 in May '96.
Thus it would appear the strategy of selling into strength would have caused the investor to bail out of LGND long before it hit 19 3/4 or bailing from DELL long before it hit 130.
Of course such a strategy would also apply to short term moves. DELL's move of last week was initially posted as up something like 3 1/2, which of course would have been a "sell into strength" signal. However, the price continued to move to up $11, which would have again been missed if the investor sold into strength when DELL was up 3 1/2 earlier in the day.
Calling moves after the fact are fairly easy, but some strategies seem to fly in the face of quoted examples.
If you really want to make money, simply pick up any financial publication and look for volatile stocks (big difference between 52-week high and 52-week low). Next buy at the 52-week low, and sell at the 52-week high. I guarantee a handsome return if the above strategy is followed. |
