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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: jjetstream who wrote (116983)	11/19/2000 11:17:35 PM
From: Jenna	Read Replies (1) \| Respond to of 120523

<font color=brown> Buy and Fold Theories instead of Buy and Hold Theories. Contrarian indicator? Do you ever wonder that too many people are expecting a rebound in technology and investor confidence is rising. Could that be sign for further declines? Maybe another 10 or 15%? Lots of people already escaped the tech sector, and are waiting for a rebound, which could mean another drop before a recovery. I'm not sure how anyone can talk about a "January effect" now when December is not even upon us and with the knowledge now that January has a new effect, which could be the effect of new earnings short falls especially in the semiconductors and and communications equipment makers. I would not jump into anything blind just yet. I would however expect companies to reveal any problems with earnings shortfalls for the fourth quarter more quickly than they did for third quarter. Changes in companies earnings outlooks should be made in plenty of time in advance of the actual report date. There was a rule enacted for the Securities and Exchange Commission called Reg FD, for "full disclosure".. This rule which went into effect on October 23, is supposed to level the playing field between Wall Street professionals and the individual nvestor by requiring that corporations give everyone equal access to potentially market moving information. Some companies are issuing press releases monthly reports on earnings forecasts. If and when all companies comply and offer easy access to company sales and forecast information BEFORE the scheduled report dates and BEFORE their earnings shortfall announcements, we may be spared the debacle we had in the last 3 months. Working so closely with earnings plays for 4 years now, it is easy to become trained NOT TO HOLD any technology stocks for more than a window of maybe 4 weeks in any earnings quarter. No long term portfolios, no blind investing in the tech sector, no holding any tech stock positions through the earnings report, and no "buy and hold theories" which are which whould be 'buy and fold' theories - buy and when you have a nice profit, fold. We leave buy and hold theories to Merrill Lynch, CSFB, Lehman and their lackies as they try to explain losses to their investors.