Peter, a lazy weatherman has a pretty good chance of being right just by predicting that today's weather will be the same as yesterday's, but would you leave your top down on a cloudy day because it was sunny yesterday?
Seriously, I see some TA as helpful in understanding investor behavior and psychology, but I would never buy a seriously overvalued stock just because it hasn't broken its uptrend line. OTOH, I will buy on fundamentals alone, perhaps considering TA to help time purchases. Of course, the best is when FA and TA agree.
BTW, considering that the top execs at EGRP are mostly marketing types, it seems to me that they would have saved some good news for after the earnings report/warning.
Bob
PS: Hey, I wonder if Softbank didn't say "we'll agree to invest $400 million in your company, but you have to spend a bunch of it over the rest of the year on marketing deals with our other portfolio companies". They sure couldn't afford to have Yahoo and the rest fall short on revenues. Uh oh, I'm getting cynical again. |
