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To: SliderOnTheBlack who wrote (50477)9/6/1999 1:28:00 PM
From: CpsOmis  Read Replies (1) | Respond to of 95453
 
Agreed.

I understand your trading philosophy, Slider, Gary and agree with it.

There exists, theoretically, a "range" whereby above it one will say "over-priced, over-exuberance, greed", and whereby below it one's gut-check says "fear or unrecognized value, or the street doesn't get the story".

This range will either move up or down with time based on the change in the companies fundamental earnings potential or asset accumulation/loss.

What concrete measures do you look for to derive this range? OR is this a "mythical" intellectual concept that makes sense but just does not make sense in the day to day trading world?

For example, I understand the basic story for the NG stocks, and agree with the presumption of a potential NG price squeeze, thus impacting earnings positively. But exactly how do you tie the earnings increases to a stock price? A price may spike due to a bunch of people jumping on at once, but at what point do you say the price is too high?