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 : Value Investing -- Ignore unavailable to you. Want to Upgrade?

To: Steve168 who wrote (16952)	5/1/2003 9:47:26 AM
From: jeffbas	Respond to of 78498

Steve, I think you have to look at stock pricing in context. In my opinion, just as in Spring 2000 a stock selling at half its high after the first selloff was still far from cheap (but temporarily low enough to allow for a significant rally for a time), a stock now selling for 2 to 3 times its low could still be far from expensive (but temporarily high enough to allow for a significant profittaking move at any time). The extreme bull/bear market highs/lows have little bearing on the true value of most companies. One non-value stock example is XICO, which I know exceptionally well. It should never have gotten down to $2, as subsequent insider buying at $3 and $4 showed insiders believed. The company has done exactly what they said they would do, or better, fundamentals-wise for many quarters. Yet here the stock is at $6 and the short position is the same as when it was $2. It is fairly valued now, but would have to get to double digits to be overpriced - which puts it in a large "hold" zone that Jurgis recently talked about.