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Strategies & Market Trends : Galapagos Islands -- Ignore unavailable to you. Want to Upgrade?

To: AugustWest who wrote (39090)	5/7/2003 10:03:15 AM
From: PuddleGlum	Read Replies (2) \| Respond to of 57110

I told myself last week that I'd wait until Monday to see if I should capitulate. Then I decided to wait until SPX 935. Then I figured I should at least wait to see how the market responded to Slimespeak and CSCO. Hmmm... sounds like denial, or, no, iron discipline! Truthfully, the market could rise for ages more and we could always find a chart somewhere to support our prognostications of a decline of momentous proportions. The S&P only rose 3.1% after I began my selling spree. That doesn't sound like much, but I missed out on some fine profit opportunities and I sure felt like I was on the wrong side of the tape in a major way. Here's some support for the bulls. Take a company like LLTC, currently earning about 19 cents per quarter. If the economy is stagnant that company will manage to increase earnings. If the economy rises they'll increase earnings at 10% quarter-over-quarter, which will quickly merit a $30-35 stock price. And these companies have excess capacity which can be used quickly to generate additional revenue without adding much in terms of overhead. So, I still think we're going down from here, but it won't take much to turn me into a dip buyer.