<<<this technique will not get you the bottom price but is safer.>>> Bill, i would much rather pay a little more for a stock than try and guess the bottom. In the old days of technical analysis, before things were measured in micro-seconds and returns of 20-30% were considered paltry, i looked for a stock to base 3 to 6 months after a severe and prolonged decline. I'm sure i missed and still miss many a bounce, but have picked up some good stocks after they have had a chance to settle. I just ran thru my main stock portfolio on yahoo, these are stocks i own and/or monitor. The following came up as examples of stocks that look like they have spent the requisite time in a basing pattern: BAY, GAL, NKE, RBK and SEG. Of these stocks, i just sold BAY and have SEG tucked away in secret chamber in my IRA that i don't look at.
Another radical idea, again from the old days, is to buy a stock with good fundamentals that is in a clearly defined uptrend. I suggest TG, Tredgar, PE 18, last Q's earning growth of 58%, and a 3:1 stock split coming as a prime example. Thanks for your postings. Larrry |
