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.

Strategies & Market Trends : Z Best Place to Talk Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Paul Dubsky who wrote (15373)	7/19/1998 10:08:00 PM
From: DanZ	Read Replies (3) \| Respond to of 53068

SDTI and my strategy. Paul, I can't comment on the fundamentals of SDTI because I haven't reviewed them, but the chart doesn't look good to me. The move on Thursday took it below support on heavy volume and worse than average negative money flow. It followed through on Friday, making a new 52 week low. I would not buy or hold this stock based on TA; however, if you like the fundamentals and don't mind riding out a potential storm, then you might hold it in case this is a fake out. Unfortunately, I don't see much support for this stock until the 11 to 11 1/2 area so you have a lot of downside risk. With regards to my strategy of buying value plays like IRF, LTCW, and DWRX...I have always been what I call a value investor. I don't play momentum stocks very often, although I have been trading a small amount of ZAP recently. I prefer to buy stocks that are trading near support, what I call a value TA approach. I don't buy breakouts very often. VLSI is different than the others that I mentioned because while it is a value play based on fundamentals, the chart looks good as well. Recently, I have been buying a few stocks that are down and out; the charts look very bad, but I like the long term fundamentals of the companies and think most of the downside risk is out of them. Stocks that I am holding that fit into this category are IRF, LTCW, and DWRX. With many stocks extended based on fundamentals and the tremendous hype in many Internet stocks, I feel "safe" holding these stocks. It remains to be seen if this strategy will work as I am deviating from my usual strategy and placing more importance on fundamentals than technical analysis with these particular stocks. I have not abandoned TA and still trade many issues based on it. However, I do have a large percentage of my portfolio in stocks that I am holding based purely on fundamentals. There is a risk in this approach because the extended stocks could get more extended, the Internet stocks might go to infinity, and my value plays might not attract any money. Still, I am willing to give IRF, LTCW, and DWRX some time to see how they pan out. Dan