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Strategies & Market Trends : MDA - Market Direction Analysis -- Ignore unavailable to you. Want to Upgrade?

To: SOROS who wrote (66175)	1/8/2001 12:45:37 PM
From: American Spirit	Respond to of 99985

These are exactly the stocks I have never and would never invest in. I generally don't buy anything with a high PE. 50 PE is the highest I've ever bought and that was SUNW which I sold during the big rally last Tues. These last high-fliers are trading vehicles for the quick and nimble. Dangerous on both sides. I prefer to slep at night. I only deal with very well established beaten-down companies (with one or two exceptions) and like the fact/possibility that we are coming off a Jan 2 (I believe) bottom in all of these. The road may not be straight up and no one will double their money that quickly but this big wash-out, slow-down bottoming process while perhaps not quite over is in the process of being reversed with the Fed's help of course. I expect several more rate cuts - and soon. In fact most of the big names are either in or close to what I call beaten-down status, that is when over-selling and fears reduce the market cap below what the companies are worth (at least in my opinion). Same as bank and retail stocks a year ago when they hit bottom. These techs like AAPL, LU, WCOM, INTC and now maybe SUNW YAHOO etc. are all different but similar in that they have either already hit bottom or are about to. Which makes them buys esp longer term.