Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Rande Is . . . HOME -- Ignore unavailable to you. Want to Upgrade?

To: Rande Is who wrote (34337)	9/10/2000 11:36:31 AM
From: Sharck	Respond to of 57584

<Since that pop could be 3 months, 6 months or a year down the road, the play on T, WCOM, VZ and others is strictly about investing and has little to do with trading, IMO.> Couldn't agree more... Hmmm well Rande, looks like we just talked ourselves outta a job LOL....

To: Rande Is who wrote (34337)	9/10/2000 5:28:25 PM
From: maverick61	Respond to of 57584

Rande, actually, I agree with you - particularly your comment of : Since that pop could be 3 months, 6 months or a year down the road, the play on T, WCOM, VZ and others is strictly about investing and has little to do with trading, IMO maybe I didn't make my initial post clear - sorry - I guess typing that late - things may have not come out clearly. I think now is a great time to buy some good companies at value prices. I have added WCOM under 30 and have several diferent positions of T that I started adding 1t 36, 34, 30. I believe like you do, that someone who buys these now for an investment, and not for a trade, which could take 3, 6, or 12 months will reap a nice return. that said, the main point I attempted to make, was that I wouldn't take value investing to an extreme. Either by loading up on all value plays, or even overweighting select ones in a portfolio - because of that time factor. I truly believe that some value plays will generate a nice return a year from now, and that is why I hold WCOM, T, LOR (and I guess I can throw LU into there as well) - but I can't see the rational for loading up on all or primarily value plays, particularly if one is maxing out there portfolio and margin to do so. IMO, that is the wrong way to go as well. thats what I meant by not taking value investing to an extreme right now. IMO, until I see the death of growth stocks and momo investing, I believe that while value investing has a place in everyone's portfolio, it shouldn't overwhelm it. Spirit, I don't intend this last comment to be critical of you - obviously, you have strong convictions on this, and I sincerely hope the startegy pays off well for you, but I just wanted to express my opinion, to give you and others something else to think about. Thanks and good luck

To: Rande Is who wrote (34337)	9/10/2000 9:05:03 PM
From: American Spirit	Read Replies (3) \| Respond to of 57584

What do you think of this new site for calculating "intrinsic value?" Nothing to invest by but I wonder how they come up with this stuff?http://quicken.excite.com/investments/seceval/?cmetric=intrinsic&cursym=&csym=UIS&csym1=&csym2=&initearnec=5222C8002C000&egrrbtn=ec&egrdd=3&egrec=5&dcrrbtn=ec&dcrec=15.00&dcrdd=0&symbol=uis

To: Rande Is who wrote (34337)	9/11/2000 3:24:50 AM
From: Greg S.	Read Replies (2) \| Respond to of 57584

Rande - I mostly agree with your thoughts on the telecoms, if we're keeping the arguments based on price history and charts and whatnot. I personally feel that they've been hit way too hard and are due for a rebound in the 3-12 month timeframe. However, I do take exception to your math. At 3 months a 40 percent gain is at an annual rate of 160% per year. . .while a 100% gain is of course at 400% annual rate of return. Hold it 6 months and a 40 percent gain is 80% annually. 100% gain is 200% annually. Hold it a year and 40% is 40% and 100% is 100% annually. I don't believe you're annualizing properly. I think the proper formula would be: ARR = (1 + RR)^(1/t) - 1 ARR = annual rate of return RR = periodic rate of return t = time in years it takes to get RR A 40% gain in 3 months translates to: (1 + 0.40)^(1/0.25) - 1 = 2.8416 = 284%, not 160%. Don't mean to be nitpicky, but it makes a big difference. :) Anyhow, I agree bigtime with your high reward vs. risk ratio. Cheers, -G