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Strategies & Market Trends : The Market Taught Me That...... -- Ignore unavailable to you. Want to Upgrade?


To: C Dunn who wrote (34)11/6/1997 1:05:00 PM
From: Richard Estes  Read Replies (2) | Respond to of 151
 
good advice: BUT the mob can bid up in the auction, a stock to 200-500% and they never make a profit. If price movement is the only thing, one should seek then you tie one hand behind your back if earnings is a must.

I do agree it might cut risk. I try to stick with stocks that have a IBD EPS ranking >80. When I want to sell to the bigger fool, I can say "it has good earnings". I am still looking for the correlation between price and earnings, haven't found it in the 30 years of looking.



To: C Dunn who wrote (34)11/9/1997 1:08:00 PM
From: John R. Sashko  Read Replies (1) | Respond to of 151
 
It is a good rule not to buy stocks until they have positive earnings. However, IMHO this is a general rule but not an absolute one. Certainly for the aggressive portion of my portfolio, I will accept the risk of negative earnings so that I do not have to wait to buy the stock later at a much higher price.

For example, look at TPRO. If you wait for positive earnings then I believe you will miss the runup.

John