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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Tommaso who wrote (70583)	11/15/1999 5:34:00 PM
From: Knighty Tin	Read Replies (2) \| Respond to of 132070

T, I consider dividend yields on indices to definitely be fundamental information, not TA. My problem with TA is in the basics. I don't think you can look at historical patterns and discern the future. Using FA, I do think you can do a credible job of determining the fair value of a business and buy those things that are priced below that level. Now, I take it another step and buy puts on things that are way above their values as businesses, but that is a riskier (and more rewarding) game. But buying stuff real cos. with real businesses cheap always works in the long run. Buying fluff companies expensively is always a disaster in the long run. The difficult part is what to do with an excellent, real co. with real businesses that happens to be overpriced. I buy puts on them, too, but I much prefer a total POS that is about to blow up. Some of the stocks I own puts on today are stocks I I owned when they were cheap. And some of the stocks I own were put plays at much higher prices. But some cos. are just crap and they never make my long list.