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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?


To: davidw2000 who wrote (28872)2/24/2006 8:33:35 PM
From: Sarmad Y. Hermiz  Read Replies (1) | Respond to of 95622
 
>> How will you determine that it's about to start going up again?

Hello David,

That's determined by the conventional "when negative news or downgrade do not cause a price drop". It is not unique to this model, of course. But it is compatible with it.

The basic difference between my method and a fundamental valuation method is that I recognize that fund managers will buy and sell on whims, stupidity, bad information, or just to cause others to panic, etc....

So for instance, the downgrade from ThinkEquity two days ago had nothing to do with fundamental value of Intel. That guy CANNOT possibly know what level inventories are at. The fund managers who sold in response to to his downgrade are total morons. (I mean think of it. A manager with 10's of millions of shares would need some clerk's prodding to decide to sell a $ billion worth of stock ? Just not possible.) But the interesting thing about the downgrade was how much down volume and price did it generate ? And today the same asinine claims were made, we see much less down volume. So the point is the idiots are basically out of shares. And now the stock will go up.

So by this model, INTC has bottomed.

Sarmad