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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: Gottfried who wrote (62289)	3/24/2002 11:59:35 AM
From: FR1	Read Replies (1) \| Respond to of 70976

That will drive those stocks to overvaluation.. Isn't this the theory behind the ltbh investor? 1) You buy something like a WMT. 2) So does everybody else. 3) So it spikes up making fundamentals bad and the traders sell. 4) It goes down but only a percentage of what it went up. 5) Then it is a value play again and goes up. This makes a staircase up. The ltbh investor says ignore the noise. Buy WMT and at the end of the year you will be up 65%. The TA guys will point out how mathematically you could be up much more by jumping in and out at just the right time. I kind of like the ltbh story better. Traders think they can draw their guns faster than the market can turn but each time you miss you get a bullet. Most gunslingers have a short life. We are about ready to see that with AMAT. Traders will sell on the recent run up and high PE, high p/s (over 7). The ltbh people will hold for the fall and it will then go back up higher than we are now. The only supposition in all this, for the ltbh investor, is that you have a company that really is growing and has more growth ahead.