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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: kendall harmon who wrote (84973)	2/27/2000 5:24:00 PM
From: lee kramer	Read Replies (1) \| Respond to of 120523

Kendall: I could retire all over again if only I the dough you spend on newspapers. You are clearly a voracious reader and your posts, over and over, put forth the most salient economic, financial and market conundrums that we investors must wrestle with. When experienced economists like Blinder, Thurow, Greenspan and others scratch their noggins trying to figure out precisely what is going on...well, it's a real problem. I grew up on Graham & Dodd, graduated to Edwards & Magee, (especially John Magee with whom I met and spent some time with). I learned that a company MUST make money. I learned that at some point, money invested in stocks would flow into debt instruments when the returns "made sense." This seems no longer to be operative. Clarly we are in the midst of an extraordinary, perhaps once in a many-lifetime, "revolution." It appears that those who control massive amounts of capital are willing to allow many firms quite a bit of time and leeway to become profitable. I have no idea how long this time period is, but I know it's not limitless. If AMZN say, doesn't earn money in three years or five years or maybe more...investors will leave the stock for more greener pastures. I've occasionally shorted AMZN though I'm not short the stock at the moment. I marvel at stocks losing massive amounts of money that keep rising. There are people who truly understand what the future is likely to bring and seem not to be deterred from buying and holding these stocks. Because I don't "understand", I can't buy and hold 'em. I know that this is gonna cost me, (it already has) potentially huge profits. I see Gemmers buying and holding and making a lot of money and I can only be pleased for them. I'm not a "kid" anymore, and I'm not sure what's going to happen. We all tend to have our own "strategies." Many gemmers have a "core" portfolio that they hang onto and have trading accounts as well. I've always been a "trader". Years ago I'd buy (and trade) a stock for two or three months, sometimes more. Now, a long-term trade for me is 5 days. The market worries me, and the greater the worry, the shorter the trade time. It's unusual if I carry a stock overnight. To reduce my worries I play both sides of the Street; I'm often long and short at the same time. There ARE some terrific shorts out there. I just wanted to thank you for your posts and for bringing the "problems" of the day to us. I hope a lot of Gemmers read and ponder what may or may not be happening. I know this well: "value" investing has not worked for quite some time. One thing, and one thing only, can increase the price of a stock...more money (orders) to buy the stock than to sell...and it matters not how many "good" things are said about the company. Good things mean little unless they are translated into orders to buy. Also, I'm increasingly impressed with the Earning's Plays and with the daily watch-list. And finally, there's nothing quite so powerful and profitable as a stock in a clearly defined uptrend, or downtrend if you've got the "nerve" to short...and that the market eventually tends to humble us all if we're not careful. (Lee)