Yes, we have value. Individual stocks and the over all market run in trends. Look at the charts of alot of big stocks they are good lessons. MER, Merrill Lynch, was $60 in January of 98, I traded it there, I recall it vividly. It recently ran in a relative straight line to to $108. Look at MER versus the Dow and you will usually see a parallel. Did MER get oversold at $60? I think that you could say that. Did it have value greater than $60 when it was $60, clearly it did. Was it overbought at $108, yes, I think so. The bashers can go fly a kite shortly on PRWT. It is way oversold at .03 Meaning everyone who wanted out is out, why sell now? It clearly has a value much greater than .03 The market is alot of empirical study,emotion,
events, and trends. The market is constantly seeking relative value for all stocks. Value versus other investment choices. Nobody wants to catch a spear so trends get have to get so extreme that people say that is a screaming buy I can't wait another moment and go into the bottom of the trend and buy. I saw it today with AIPN. It is an oil stock, had all time high which was overbought at $7 in 97 and finally touched $1 yesterday and was oversold.. People could not stand it any longer and bought, the trend is now reversing. |
