To: WaveSeeker who wrote (4965 ) 10/15/2000 8:34:25 AM From: Robert Scott Read Replies (1) | Respond to You're right - that's why it's important to buy the same $ amount of EVERY stock - very difficult and risky to pick and choose. Timing is an issue as George is not a market timer but a position must be eventually built. I did an analysis of his picks based not on the price at the IPO or the price on the last day of previous month or the day before but rather at the price you or I could have bought the stock on the day it was recommended (ie after an initial pop because you never are the first to get the info). Based on this price, a number of shares should be calculated and this number of shares should be bought regardless of whether the price goes up or down after recommendation. Of course, the safest way to do this is simply to buy the stock on the day of recommendation but most of his stocks recede back to their price before the recommendation within 2-3 weeks of the recommendation. Perhaps the best method is to buy 50% on the day, then 50% later. Based on closing prices Friday, the stocks are up 440% (ie 5.4 times). Absolutely fantastic since he only began in mid 1996. What is more important is that if you thought his best 3 investments were too expensive to buy, you would only be up 194% (nearly 3 times) - still very good but it shows how you need to participate in all of the stocks. By the way, it is also important to note that the stocks George has picked and then removed from his list did not lose money as a group - so you are still safe buying all the stocks. Having said this and recognizing that George is not a market timer, I have not built a position yet in 3 stocks - CIEN, AMCC and BRCM. These 3 stocks are very, very expensive relative to their peers and on a market cap / rev run rate - 30X, 58X, 50X respectively. JDSU is too but it is the Intel of the telecosm so I feel a position should be built and it is off over 30%.
