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 : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Seeker of Truth who wrote (45088)	8/1/2001 3:27:26 PM
From: tinkershaw	Respond to of 54805

the question remains at what price in the recession. No doubt that is the question. I think doing fundamental analysis such as my valuation for BEAS is the way to go in these situations. Toss your assumptions into the spreadsheet, if the gorilla falls below the value you calculate, then you can feel more comfortable putting more money into it. Always with the knowledge, that markets overreact both up and down, and your assumptions could be erroneous, so be conservative. There has been a suggestion that I do a RTW newsletter article on valuation. I may volunteer for the task and perhaps that would put more mustard into this discussion. I do know that in a recessionary environment that T/A actually does seem to have some efficacy. I know for example RAT calling at GAP for BEAS at $20, and sure enough it filled, as well as other similar calls. So T/A can be of some help as well for determining buy-in points. I did take advantage of Rat's efforts in regard and rode to a quick near double. So I think it is a combination of knowing what is the fundamental value of the company, getting a feel for the market, and looking at T/A to help you decide your purchase points. I for one have learned that going to cash for a period of time is not the sin that the Fool had at one time described it as. But we will never get the very bottom, and this particular crash is a historic abberation that we may never see the like of again {we could be so lucky}. But the above are my thoughts on the matter and I'll see if I can find the time to draft something up on valuation in the future on the RTW newsletter because I know nothing of T/A and don't have great interest in learning, and it is hard to transfer "feel" for the market into an articulate thread. Tinker