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Strategies & Market Trends : Bill Wexler's Profits of DOOM -- Ignore unavailable to you. Want to Upgrade?

To: Jim Roof who wrote (309)	3/10/1998 6:08:00 PM
From: Bill Wexler	Respond to of 4634

<<First off - there is nothing at all scientific about the markets anyway. >> True. <<Your statement is begging the question. >> No. T/A attempts to ascertain future price movements based on past price movements. The field has its own pseudoscientific lexicon (e.g. bollinger bands, h&s patterns, etc.) it is impossible to determine future price movements based on past price movements. Fundamental analysis simply asks the question, "Am I paying a fair price for this business based on its ability to generate cash flow now and my reasonable expectations for growth in the future?" FA generally ignores short term price volatility. <<Are you telling me that you are just as likely to buy a fundamentally sound stock that has been trading down for 2 months as you are one that has traded up for 2 months?>> Absolutely. I've done it many, many times with all the longs in my portfolio. As long as their businesses remain sound, I'm always willing to buy more stock if the market prices it fairly or - better yet - at a discount. That is also why I believe companies like Zitel are still great shorts at 12, even though I started shorting it at 50. <<But then, when did scientific proof mean anything to you anyway?>> It means everything to me. That is exactly why I understand companies like Zonagen, Biotime, and Zitel are doomed. They're products are bogus or extremely overhyped.