Paul,
Considering that your annualized return had to have been well in excess of 150% in April, yes, I would say that PeopleSoft has been an absolute dog since April.
And I agree that TA and chart reading does not have much of a basis, with the exception that a lot of people believe in it, and if causes them to buy or sell, then it has to have some effect. A lot of money is spent every year doing it.
However, there are a hundred other things to look at and consider outside of the elementary pie-in-the-sky theories it looks like you gleamed from Lynch's Beating the Street, most of which is unavailable to everyone except a select few, anyway. And irregardless of anything else, the fundamental postulate of the stock market which is undebatable: You can't fight the tape. And momentum has privileges, whether management and the fundamentals are superior, as you believe PSFT's to be.
I'm done now, this is boring me to tears again, and this stock is not going to be doing much in the near future anyway. It has certainly lost its momentum, and the options guys have not hit it up for October--yet.
Late,
G |
