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Strategies & Market Trends : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Paul Senior who wrote (14874)	7/19/2002 2:16:27 AM
From: Dale Baker	Respond to of 79177

I was thinking more in terms of my own portfolio of value small caps. I did a chart early in July with their trailing PE's and 2002 estimates (these are real estimates for financial and retail stocks, not software company "hope we close ten deals on June 30" types) and found them pretty low already. Then most of those stocks sold off 10-30% this month. To me, that indicates panic selling by the little guys and fund selling to meet redemptions. Quality is thrown out along with the junk if the price is going down, fundamentals be damned. If I am right, these stocks will have a modest rebound once selling exhaustion is reached. If you are right, I have a long wait ahead for any substantial gains.