"You sound like a newcomer to investing..."
Wrong! Been at this 25 years. Hope your read on things is better wrt investing.
Here's a story, kiddies:
Some old-timers like myself may remember like it was yesterday how the biotech stocks were the hot thing 6 or 8 years ago, like the I-Net related stocks are today. The things were tremendous, if you were in them. The P/E's were outrageous. Earnings visibility was often poor. But it was the sexy thing, the wave of the future, and you couldn't miss if you just stopped asking questions and got in. Headlines were everywhere. The profits were sure to materialize. People were always going to get sick, after all.
Well, there are a lot of folks still waiting to get back to even, if they've held on with the so-called "can't loose" buy-and-hope approach, while the big opportunities have been elsewhere in the interim. I've not had any part of this (it's not my cup of java), but have watched it happen.
Sure, I'd like to pump up CSCO a little, too, because I'm also long (and have a dream profit). But people are right to be cautious, even here, which is relatively safe (at least the fundamentals are) for the foreseeable future IMO. All in all, the run-up in CSCO has seemed much more reasonable than that in some other stocks in the general industry. It's discerning buyers that do well in the long run, not all buyers. And it's usually hard to know what "discerning" means. That's all I'm saying as the Cisco Express takes a breather.
ChrisMeister |
