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 (19254)	6/7/2004 6:26:15 PM
From: MCsweet	Respond to of 78485

Steve168, It was a tough day for short positions. I regret not being fully invested in value stocks the past several days, but the risk/reward of the current scenario doesn't seem to me to justify being fully invested (i.e., stuff not as cheap as it used to be and a bad event could really drop the market). On the other hand, the market generally goes up over time so I am fairly well invested. The RSC buyback along with the negative Motley Fool article (they are a contrarian indicator for me at times) made me fairly bullish on RSC. However, the overhang of stock options has lessened my appetite, so I only bought a little. I still like BAMM and MEOH. We will see how it goes. MC

To: Steve168 who wrote (19254)	12/14/2004 10:45:07 PM
From: Bob Rudd	Read Replies (2) \| Respond to of 78485

RIMM Short: Initiated a Ready Fire Aim short 0f RIMM @87.96 based on what looks like a big up bounce in litigation risk for a stock whose price reflects a whole lotta love. Morningstar, which uses a Buffettesque approach shows a fair value $45 per share despite acknowledging substantial competitive advantages and growth potential. If it weren't for the patent/litigation risk, I wouldn't dare short this. But if concerns like those expressed in these WSJ excerpts: "An appeals court dealt a heavy blow to BlackBerry maker Research In Motion Ltd., as the court substantially upheld a previous patent-infringement ruling that could block BlackBerry sales in the U.S. or force the company into a costly settlement." and... "The appeals-court ruling is "an enormous victory for NTP," and now there is "a gun hanging over RIM's head," said James Hurst, a patent lawyer and partner with Winston & Strawn in Chicago." come to be discounted, they could drive the price below the uptrend line that's held for the last 2 years confirming todays high volume key reversal..this could send the technical momo's scurrying and produce quite a drop [Please forgive the technobabble, but with momentum stocks, it's a factor]. One justification for value investing is it gives you an idea pretty quickly just how far away the safety net is...With RIMM, despite a great business it looks pretty far down from here...but I have more studying to do on it.