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Technology Stocks : Gorilla Game

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To: Shane M who wrote (298)10/5/1998 12:22:00 PM
From: mauser96  Read Replies (1) of 387
 
I doubt if anyone can reliably identify early potential gorillas earl enough to get them cheap. Since established gorillas are so visible, it's hard not to pay a stiff price for them considering the general market. Cisco was as low as 20 in 1997, and probably seemed expensive even then. I have never had any exact fixed rules for what a stock should be worth at any given moment, because the stock market ultimately is based not on facts, but on perceptions and opinions. OTOH, I would be a lot better off if I had some rule that kept me from buying the last several months. Your idea of using sales as a criteria sounds good because correlation analysis has shown that many of these stocks track better to sales than earnings, but that this also varies by industry and company.
See rcmfinancial.com
One thing I have learned from many years in the market is that it is much harder to make correct selling decisions than buying decisions.
good investing
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