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Strategies & Market Trends : Ask DrBob -- Ignore unavailable to you. Want to Upgrade?


To: FLACK who wrote (92404)1/11/2006 3:30:15 PM
From: bcrafty  Read Replies (1) | Respond to of 100058
 
FLACK, "17 stocks that always go up"

I was still thinking about the discussion on the board last week about columnists and their lists of stock picks, and I came across this article today that is a little different. Instead of picks based on the writer's own TA or FA, he lists stocks that have consistently generated a positive return for the last ten years. His guess is that at least three fourths of them will continue to generate a positive return this year. It sounds interesting, and while these picks might not quadruple in a year like GOOG, the idea of playing consistent performers sure beats losing money on more speculative picks, doesn't it?

moneycentral.msn.com

As for the template to e-mail those columnists with buy picks but no listed exit strategy, I'd suggest something like this, which I tried to word like it was coming from an amateur that is pointedly polite but nevertheless shrewd <g>:

Dear ________________:

I read with interest your recent mention of (name of stock) as a good buy candidate at this time, now priced at _____. I agree that this stock currently looks interesting, and I appreciate the work that you have put into producing this selection and passing it on to us. However I would like to ask you to make one more consideration of this stock before moving on.

As you well know, no matter how sound the fundamental basis of a stock may be, various market conditions may affect the price of this stock causing it to decline from its current level. If the stock were to decline from its current price, what would be the price that you would sell this stock and cut your loss rather than continuing to hold it?

Also, I think that it would be an added benefit to your readers if in future columns you might consider listing a selling point for any new buy recommendations that you share with us.

Thanks in advance for considering this matter, and I await your reply.

Yours truly,

_______________________