John,
That may very well be the case. With most stocks that I sold during the Jan-Feb runup (COMS, KMAG, QNTM,ENTU etc) and March-April run-up (SUNW, NT), except for SUNW I have found it quite difficult to pull the trigger to get back in. The reason for selling was that these stocks were far over-valued than what the fundamentals dictated. For most of stocks that I sold, I continue to think that they are overvalued (except KMAG maybe). SUNW may go lower (didn't think this level was possible or probable just last week) with the market, but I don't believe anyone can successfully call the bottom. The way I buy is - establish value based on your information / analysis / etc. and use the market sell-offs to accumulate. Beyond a certain point I buy irrespective of the market (due to which I have typically gotten into stocks early during sell-offs). After a 300 point correction in NASD (about 400+ in NAS 100, and a 22 point drop in SUN), I don't know how much room on the downside there is. But with the economy remaining strong, rates low and net stocks finally crumbling, I would think companies with strong earnings/revenues and stable history should do well from here.
Regards
Alok
Regards |
