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Pastimes : Learning To Invest Correctly - A Shared Experience

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To: Fredman who wrote (188)8/2/1998 10:28:00 AM
From: Don Pueblo  Read Replies (1) of 253
 
I would never buy 8 in the same sector, unless I only played one sector. My chart says that GLM should go to 31. Growth rate is about 20%. NE looks good for 43 bucks technically. Growth rate is 23%. MDCO has a great growth rate, 28%, but it does not look as good fundamentally in other areas. My chart says it's good for 28 bucks.

All other things being pretty equal, no contest, I'd go with NE and MDCO, and get out of MDCO if it turned south.

The problem is where do they bottom out? I think a good case can be made for the bottom right here, but I can't draw a firm conclusion. Additionally, the entire market looks ready for a move down, and the weak stocks get hit when the market moves down. If the market moves down sharply in the next 60 days, I'd be all over NE, and look for a good spot to buy MDCO. Not to say GLM does not look good; it's a great company. I just don't get excited about buying a weak stock in a down market. It's silly.
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