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Politics : Formerly About Applied Materials
AMAT 225.18-1.5%3:59 PM EST

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To: Jacob Snyder who wrote (18274)3/29/1998 12:34:00 PM
From: Paul V.  Read Replies (1) of 70976
 
Jacob,>After 3 years at investing, I've simplified my strategy to this:
1. Make a short list of great companies. From this list:
2. buy when the last analyst downgrades, and
3. hold till the last analyst upgrades.

Sorry, had to get that off my chest.<

I agree with you. I have noticed the same things you have stated. I search for those companies which have near monopolies in their sectors. Following the Dorsey Wright Sector Bull Percentages I let the statistics indicate to me what sectors I buy into. Then, I invest in the company in the sector with sound fundamentals (NAIC data used) and which is below the 30% (Oversold area) area or slightly above it. Then, I just set back and wait for the company to move up statistically. Naturally, by that time the analyst have upgraded during that time. Also, I like those sectors which have wide swing between the Oversold area (30%) and below and the Overbought are (70%) and above. Those sectors appear to be the SEMI and Biotechnology off the top of my head. I know there are also a few other sectors which also have large swings.

Thanks, for you feedback. I am amazed how your thoughts and mine track. We must be flexible in our thinking when investing.

Just my $.02.

Paul V.
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