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Strategies & Market Trends : Contrarian Investing -- Ignore unavailable to you. Want to Upgrade?

To: OldAIMGuy who wrote (251)	9/19/2006 4:57:18 PM
From: E_K_S	Read Replies (1) \| Respond to of 4080

Hi Tom - Thank you for your observation on Christopher Banks. This is exactly the type of historical story I am looking for. There is a lot to be learned about past events: (1) What triggered the contrarian stock screen, (2) were there stock specific news stories that triggered the sell off, (3) when did capitulation finally come in, (4) how did you established your position and (5) what was your strategy that you used to exit the position w/ maximum gain. I find that when companies sell off significantly they over react due to fear by both the individual and large investor. Many times there is no change in the company fundamentals or underlining core assets. A good contrarian investor can capitalize on this and it can be the best buying opportunity of a life time. I too have been watching Pilgram Pride and several of the other poultry producers. The Bird Flu scare is only one outside event that has impacted this industry. Look at the price of corn over time and significant weather changes (heat and hurricanes). These stocks tend to discount the worst as different news stories hit the tape especially the impact of potential weather. Many times these companies have a set amount of insurance to cover catastrophic events but the stocks still sell off. Continue to post any other stock capitulation stories you might have capitalized on. I find I always learn new things to consider especially when I review the different news items that led up to the "Event". Many times it is just Fear and Greed that moves these stocks. EKS