Micheal
Nice flame, but seriously, do you think it is impossible to see out on a stock or industry 3 to 6 months? Long term, eventual, should be value is easy to spot in low PE, Price to book, etc. but that is not what moves the market today. Don't you think it wise to buy stocks that have all that value and long term potential, but also have a visible chance for a quick pop in the near future? After all, havn't you seen a repeated pattern with so many under valued stocks: they get hammered down over a long period of time to a real low price, and then when news emerges that the turn around is near, BANG!! It triples in a month! This just happened with TRID.
Why buy an undervalued stock if the only forecast one can discern is for more indefinite gloom? Why not wait until you have a STRONG suspicion that things are going to turn. There's more than fundamental analysis involved in making good investment decisions.
I am not trying to talk this thread out of value investing, but rather trying to correct what I see as an over-emphasis on pure number crunching, and a lack of concern about short, mid and long term forward looking circumstances for companies.
Bill Z |
