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Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Patrick Slevin who wrote (21792)	3/7/2000 1:59:00 AM
From: Alan Smithee	Read Replies (3) \| Respond to of 63513

Evening Pat Sorry I missed you in Reno. No need to worry, I'll catch you for that dinner sometime. I hear there are some nice restaurants in NYC.

To: Patrick Slevin who wrote (21792)	3/7/2000 12:51:00 PM
From: Edwarda	Read Replies (1) \| Respond to of 63513

If I might step in here--possibly at the risk of my fool neck? Fundamental analysis is most assuredly not heavily backward-looking, as some people seem to think. Would not life be easy if all we needed to do is review the fundamentals each quarter. A good fundamental analyst is constantly on the prowl for indications of potential future change--shifts in a company's products, markets, focus, competitive position, or whatever--that will show up in future revenues, earnings, and cash flows. For example, there were people who sensed potential trouble in LU from examination of the company's operating cash flows because of the possibility that the company was having difficulty funding its planned growth. A fundamental analyst does not merely review the fundamentals; he or she projects the future fundamentals. Pat, if you think that's easy, cleaning the Augean stables is a snap by comparison! It is the differing projections that create stock price fluctuations. The chatter about recent broker recommendations is less meaningful except that it calls investors' attention to a particular stock. If there is a potential positive change described in the recommendation, more investors will be made aware of it. Many use both fundamental analysis and TA. At the very least, TA can inform as to how the market has reacted in the past to certain kinds of information unearthed through fundamental analysis. RS is not a part of fundamental analysis per se. It is another indication of how the flow of information about the company and its industry are being perceived. The fundamental analyst is trying to get at what the future flow of information is likely to be. Climbing off the box now....