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Strategies & Market Trends : Zeev's Turnips - No Politics -- Ignore unavailable to you. Want to Upgrade?

To: DlphcOracl who wrote (75827)	6/7/2002 9:01:51 AM
From: DlphcOracl	Read Replies (1) \| Respond to of 99280

Those people who tried to "catch a falling knife" by buying TYC at the beginning of the week, when it dropped from $22 to $16 on news of Dennis Kozlowski's investigation, will be down nearly 50% in one week when market opens this AM. So much for bottom-fishing and gobbling up "bargains" when the company is embroiled in controversy, a sea of debt, and questionable practices. Moral of the story: (1) never jump in and buy a disaster or train wreck unless you are CERTAIN that the price drop is due to an item or news event totally misunderstood by Wall Street; (2) NEVER bottomfish a company with accounting questions or scandals, a company under SEC investigation, or any hint of unethical behavior. I learned all of this the hard way last year when I leaped in and bought Providian Financial at $9. After being stopped out at $7.50, I watched it rapidly drop under $3 a share.