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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (125580)	10/9/2000 4:44:05 PM
From: Rob S.	Read Replies (1) \| Respond to of 1577829

I have established "core positions" in many tech stocks, including AMD but I am trading in and out besides that. That has about offset the losses in those positions. For the mid-term horizon, I think this is an excellent season to buy beaten down tech stocks. One can argue either way for valuations: If the goldilocks economy continues through next year, then many techs are undervalued based on 2-3 year fundamentals. If there is a modest downward revision in many tech stocks, then they are slightly undervalued. But if there is a real slowing of end markets for telecom equipment and PCs, then the tech stocks are still fat pigs. I don't think the latter is true, at least not yet. We should see robust growth in end markets and under-capacity for another few quarters. But it remains to be seen if we are closer to the beginning or end of the supply/demand bell curve. A stock being “extremely oversold technically” doesn’t mean it is the absolute best time to buy. Picking a bottom is always as much luck as knowledge. On the one hand, you should wait for the sector or broad markets to turn up and solidly reverse the trend before buying. On the other hand, huge moves in tech stocks often take place in just a few days - as much as 1/2-2/3 of the eventual rally has already taken place before many investors take action