Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Strictly: Drilling and oil-field services -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (25815)	7/16/1998 2:13:00 PM
From: Robert S.	Respond to of 95453

The buy and hold approach should focus on selecting quality companies with current market values that are at a discount relative to their underlying economic value. Chuzzlewit, I agree with your statements concerning the passage above. I believe that The Motley Fool made the statement above as pertaining to initial market valuation so as to maximize gains over the long term. I am a "buy and hold" investor but, in this age of the internet with it's nearly instantaneous transmittal of information heretofore reserved for Wall Street, I believe the odds are better for market timers than in years past. If one has the time and/or inclination to follow the ticker all day, they may beat the market but I feel the odds are against them doing so on a consistent basis. The drillers and oil-service stocks are excellent long term holds at their current valuations. I believe these stock prices have been beaten down so low, and for so long, that most, if not all, the negative forecasts are already reflected in their stock valuations. While I realize The Street possesses incongruous views pertaining to the semiconductor and driller/oil-service sectors, the former is not expected to rebound until the 1st half of 1999, yet it has shown strength recently as many investors realize the negative forecasts are already reflected in the share prices and while some downside is possible, it will be minimal relative to the upside potential. AMAT, for example, missed it's quarter estimates and does not anticipate a turnaround until next year, yet it's shares are exhibiting strength and they have a strong base beneath them. While it may be wishful thinking, a similar "frame of mind" may be developing in regard to the drillers/oil-service stocks. Semiconductors and oil will be in great demand (the Asia crisis notwithstanding) for the predictable future and anyone buying oil shares at these depressed valuations will be generously rewarded over the long term.