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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Madharry who wrote (9805)	1/29/2000 6:00:00 PM
From: jeffbas	Read Replies (1) \| Respond to of 78476

Armin, I am waiting for the dividend cut on SNH. That may create the bottom. If the bottom is now on "sell on the rumor, buy on the news", that's the breaks. I also like CMH, but am waiting as well. The homebuilders like CTX are making new lows and FLE has been clocked recently. I am just guessing that we may have a capitulation decline of a couple more points on CMH to go, perhaps after they have reported a quarterly decline in earnings. I share your general view on tech stocks, and haven't sold much of low cost smaller company positions I have held for years. I still can see sufficiently more upside in ones I own not to trade a long term tax position for a short term one in something else after a correction. Furthermore, I regard technology as the place to concentrate on for long term investment, so long as you avoid ludicrous valuations. Jim mentioned Proctor and Gamble recently as saying they could not justify a 35 multiple. In my opinion, there are a lot of well positioned technology companies where that kind of statement does not apply. For example, I mentioned semiconductor distributor SEMI a couple of times here at $3+. Even though it does not produce proprietary products it benefits from good times in the semiconductor industry. At $7 7/8 it has recovered to a bit above book value. However, I saw no reason to sell it last week at $10 as I expect them to report a 50 cent quarter sometime in 2000 and the stock reach $15-20.