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

To: Mike McFarland who wrote (10131)	3/12/2000 1:12:00 PM
From: Mike McFarland	Respond to of 78763

fwiw, I bailed on Value last week, need to do some more thinking on why I feel I need to abandon a hot sector (biotech) when I know why I own each of my companies--but was merely buying value because they are "cheap". With regards to JCP I wrote "any chance you could see sombody like a Wal Mart buy or merge with JCP". I thought it was interesting that a blurb in the April issue of Worth, p66, said that Penny's catalog business is losing share to discount stores like Wal Mart which "have greatly improved the quality..." Along with WM, BNI, and BA, Penny's is on my list to think about some more. I have a question for the thread: Up til now Greenspan and his threat of rate hikes has punished "old economy", value stocks getting cheaper all the time...but he has not taken the steam out of high tech "new economy". Should I feel compelled to move from a winning sector to losing sectors merely because I have done well? I would hate to 'lock in gains', and then lose 30% off the top if the cheap stocks keep getting cheaper. Plus it would be particularly annoying if each of my biotech speculations turned out to be correct. Recently my father has been pointing out all these value stocks which are down, and I've encouraged him, my value list is getting longer by the day. So keeping an open mind...and my biotech were off seven percent on Friday, so that gives me pause.