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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: bpf who wrote (5049)	1/30/1998 9:01:00 AM
From: LastShadow	Read Replies (3) \| Respond to of 120523

Strategy? Type in 619 in the thread # box in the upper right hand corner. That gives a general idea of what I do. However, I do follow sectors seasonally/cyclically and in relation to whatever drives them - for example oil prices to refiners, toy mfgr's pre-Christmas, Foo/Drug/Household during market declines. A lot of what I follow is ictated by where the opportuniity is in the market in general. For example, with all the 4th quarter selloffs in tech secotr, my guess was that first the financial houses would accumulate bonds driving thos prices down, then the funds would start acquiring the financial houses, and all during this time would be a period of merger/acquisition and takeover in the tech sector. That is pretty much what is happening - although some of it was delayed due to the asian economy as so many tech firms have ties there. The logic behind thinking things would go this way was that when large numbers of stocks decline in price, if they are fundamentally goood companies, others will want to add them to thier own resources to strengthen their position and broaden their salability. Financial houses would go to bonds as a hedge against bad time that were being predicted last fall and after the October dumping. Financial houses look for saftey, fund look for value. The best value would be in depressed stocks, low caps with growth potentail, or the financail houses themselves, as they would be less than stellar performers with the bond holdings, and yet leverageable for growth all year. The caveat in this is that with acquisitions qnd mergers, it will inflate/deflate earnings numbers very quarter as those companies that the hits - prices may now be less or more than expectations, and the trick will be to either play the market psychology (speed needed), or play the fundamental value (diligence needed). Or both. I hold for hours, and I hold for months. Sometimes for decades - GE I have held since 1979. MSFT since 1989. I do some investing, some speculating and some trading. Rookie Dave - not to worry I have plenty of folks who are more than glad to make sure my ego never gets too comfortable...glad it worked for you, and don't knock yourself for making the profit you did - some folks bought too late, held too long and lost money...