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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mauser96 who wrote (16691)	1/28/2000 2:41:00 PM
From: Dr. Id	Read Replies (1) \| Respond to of 54805

Re: averaging down, I agree with you for the most part. However, I think that there are instances where adding to a position as it is falling makes sense. For example, NTAP was hit last June or July by a selloff and it was clear that it had nothing to do with the company or it's prospects. In that instance, I doubled my position. In Sept 98, VTSS was hammered as the whole semi industry went down. There was nothing fundamentally wrong with VTSS, so I greatly added to that position. Finally, I think that QCOM is in a similar position today, where nothing has changed in the fundamental prospects for the company (in fact, in some ways they have improved). So, another buying opportunity for those wishing to add to their position. Overall, though, I agree that averaging down when the company itself has faltered is usually not a prudent thing... Jeff