ole 49r
Grant is correct.
Generally I am a value "technology" investor. I look for high tech stocks that have fallen out of favor with Wall Street. Most of the time the Wall Street crowd is correct when they take a stock down, but sometimes if there is hot money in the stock you can profit from the "herd" mentality that sells on the second derivative of sales growth. (Increasing at a decreasing rate!) I look for product transitions that may explain why they stumble. GALTF is a good example. Here I try for multiple expansions as well as earnings growth. I never fall in love with these kinds of stocks.
Then again, value is in the eye of the beholder. When I look at UNPH currently I see a company that wants to be the biggest and the brightest supplier in a hot field. I think that if you can find companies like UNPH, EMC, CSCO, MSFT, LU, DELL, CTRX, MERQ......companies that are in secular uptrends and "buy smart" ie on the dips, you can make money also. These kinds of stocks I put into my core portfolio and if they dip....I buy more. Grant might call this momentum investing because these stocks are are at lofty multiples and they are headed up. I "love" these kinds of stocks and get very attached to them.
I know that most corporate managers track institutional money that has a reputation for being "hot", such as Nicholas-Appelgate etc but I am not sure there is any way before the fact to tell what someones buying motive is until they reveal it when they sell!!
Do you think gold prices have hit bottom?
Regards
Stew Nelson |
