SI
SI
discoversearch

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 : Stock Attack II - A Complete Analysis -- Ignore unavailable to you. Want to Upgrade?


To: Stephen who wrote (21633)10/14/2001 11:38:55 PM
From: Cymeed  Read Replies (2) | Respond to of 52237
 
Stephen, as to the comparison of April's rally versus current one, I see two differences here.

1). Stock prices are much cheaper currently;
2). Interest rate is much lower currently.

I did a Discounted Cash Flow analysis on Wal Mart. This appear-to-be stalmart may be worth of $70 per share at the 4.5~4.6% discount rate and it is currently trading at around $53. The current rally seems to have some value content in it.

The similarity is, in both periods during both rallies, people seem to bet the economic recovery is only two quarters away.

Can it be right this time and wrong in April? I don't know. I am very much long stocks and wary of this as every other longs out there.