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Strategies & Market Trends : Roger's 1997 Short Picks -- Ignore unavailable to you. Want to Upgrade?

To: Jeffrey S. Mitchell who wrote (7847)	12/8/1997 12:07:00 AM
From: CalculatedRisk	Read Replies (1) \| Respond to of 9285

Jeff, thanks for this information on marginability. Schwab still refuses to allow margin for ALYD (I referenced your information!) - they claim the stock is "too volatile and too risky". And Zitel is marginable?! <G> Schwab's argument is absurd. First, who are they to determine risk? Second, its not like my cupboard is bare - I don't need margin - just shares to short. If they don't budge soon, I'll be looking for another broker. RE: "going solely on market cap". My investment strategy is very simple and usually involves significant work. I try to determine the future prospects of a company (the hard work) and compare my valuation with the current market cap. If they are significantly different - then I try to determine why! Sometimes I'm just missing something, other times the stock is over-hyped (a short opportunity) or "out of favor" (a long). As an example, AMAT is out of favor. This is a Company with excellent fundamentals going forward and is experiencing NO impact from the Southeast Asia financial crises. OTOH, ACLY is a fine little company with almost no way of justifying their current market cap. I know you disagree on ACLY, but I have to trust my own analysis. I have enjoyed your posts and wish you the best with your investments. Best Regards, Bill