I am taking the liberty to post this about Dessauer from Yahoo. It is must-reading. It was written by somebody who goes by De_Modulator.
Have followed JD for a long time and seen decrease in quality of
newsletter and hotline advice.Recommended max buy-price limits
are disappearing! ( Cendant was a "buy up to 25" AFTER the
accounting hit. I bought in at 20). It's now 11.The following
highlights are not talked about a lot, but they reflect MY personal
pain: Singer 28 to 5.25, Pokphand 12 to zilch, Comshare 25 to
4.8, Service Merchandise 5 to 1.4, GFCHX from 15 down (JD
comment: "some people even sold GFCHX, a move they will
become to regret") has now recovered to 10, GM ("worth 90"),
SFA (" will not see less than 20 again") is at 14.75. Heads UP!
>>>>>>>>>Judgement call:Y2k is for Dessauer an opportunity to
profit from the fear of others! (his statement paraphrased). He
promised that he will signal the sale of "our" stocks when certain
events justify it. Some of these events are taking place now. You
judge: as a manager of OPM (other people's money), do you really
think he will put himself out of business?Potential subscribers: his
reference material was hopelessly out of date and that should have
warned me.A smart concept of his is to stay totally out of market
timing, and advocate strictly buy and hold. This approach sidesteps
the issue of relative valuation of stocks to the market. It is a "safe"
position for him. But it can really backfire if market conditions
deteriorate: the warning, if it ever comes, will be late!
Buy-and-hold'ers will be slaughtered if some economists (Yardeni
et al) are right about the effect of world wide contraction on the US
market. JD misjudged this already: SFA, LSI. It does not help the
stockprice of a "good" company if it can't SELL enough. It's that
simple. Have yet to read that in his newsletter.Watch for investor
sentiment to decline again and general earnings to contract further. (
Both are signals once given by Dessauer for a decrease in all stock
prices.) HIS advise will be late. Form your own opinion about the
Y2k effect on asset valuation, because there won't be any help
from JD either.He is not alone with bum advise. His friend(?)
Lazslo Biryni recommended recently Peoplesoft at 44 as the one
stock to own for the remainder of 1998, it is now around 20.
Richard Band ("they don't call me Rchard Bond for nothing"):
(subscription expired):This man gave good fundamental advise on
Zero Coupon Bonds. Stayed like Desauer away from SELL
advise, then decided to "manage the buy and sell points of Zeros
more actively". MISSED THE ENTRY POINT ("NOT YET") and
gave away his subscriber's potential gains when bonds rallied and
never looked back.Summary: JD manges assets for clients, and will
therefore NOT ISSUE A TIMELY SELL SIGNAL to newsletter
subscribers! And if he did, you bet he'd sell HIS holdings first!
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