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Strategies & Market Trends : A.I.M Users Group Bulletin Board

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To: steve in socal who wrote (4980)7/14/1998 7:52:00 AM
From: OldAIMGuy  Read Replies (1) of 18928
 
Hi Steve, At least using Value Line's 3 and 5 year BETA ratings, I've found that very low BETA doesn't mean stable price. BETA of 1.0 means it moves with the market. 1.5 means it moves faster than the market and in the same direction. 0.5 would be a stock that moves contrary to the market and rapidly.

So, low BETA stocks tend to be defensive stocks. If we take a look at another statistic from Value Line - STOCK PRICE STABILITY - we find that EA is ranked 5 out of a possible 100 (lowest in stability), DECK is also a 5, LWN it the stable one with a 45 rating, and TRMB is back at 5.

I've found this double check of BETA to be quite valuable over the years. Thanks for the nice work!

So, like me, they are very unstable and move opposite the crowd!!!

Everybody is out of step but me!!

Best regards, Tom
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