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Technology Stocks : Davox

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To: Scott Farnsworth who wrote (341)8/5/1998 12:24:00 PM
From: Czechsinthemail  Read Replies (1) of 439
 
Scott,

I agree that it's pretty ridiculous, and down the road people will get the chance to look back and wish they had bought more at this price. The problem is that so many people feel more secure with overvalued large caps than they do with undervalued smallcaps -- even those with superior growth and little or no debt. Ultimately, that's what makes bargains and profitable investments out of these opportunities. But it takes a strong stomach to step in and buy and then wait for the stock to recover.

Depressed shares like this are actually less risky than the ones people feel comfortable with precisely because so much of the damage has already been done. But most investors have a hard time distinguishing real risk from their emotions. Thus they sell at bottoms and buy like mad at tops.

good luck,
Baird
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