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Pastimes : John Dessauer's Investors World -- Ignore unavailable to you. Want to Upgrade?

To: Gail Morgan who wrote (1499)	8/14/1998 9:38:00 PM
From: Frank Heise	Respond to of 2346

In hope of being somewhat helpful, what you are concerned with IMHO is normal Value problems. In JD's original instructions (over 5 years ago), he said he will not attempt to operate portfolios for us. He stated that he would point out Values, but we are responsible for our portfolio operation. Thus, CPPKY may be a good Value (and getting Better, <BG>) but we must each limit our own losses. I use 80% of the 100 day Highest High to force a sale. He has, IMHO, the best record for ID'ing great stocks that I have found since about 1950! Over the last 5 years, we have averaged about 35% Bottom Line growth using his data. Not bad; but our GE DRIP, from 1992 till now, is up about 700%, go figure! Try adding a selection tool and a sell tool to his data. I predict you will be very happy that you did.

To: Gail Morgan who wrote (1499)	8/15/1998 11:40:00 PM
From: ahp358	Read Replies (1) \| Respond to of 2346

The issue of time value of money and opportunity cost Vs. "patience" a/k/a holding on to losing stocks is important. I used to rely heavily on JD's recommendations, had some gains but mostly losses. Still have some of his recommendations which I want to get rid off to trade-in for some battered blue chips selling at bargain prices, but would have to incur losses on stocks sold. I no longer subscribe to JD's newsletter because of his bad and sometimes irresponsible advices. For example, the gaming industry has been out of favor for a long time, yet he still tauts HET. Perhaps 5-10 years from now, HET will be great. However, that's an opportunity cost - the cost of forgone opportunity not chosen). During this 5-10 yrs, you could make decent profits with other winning stocks such as the big drug stocks which is virtually recession-proof (people need medicine in any kind of economy) and have enviable profit margin (around 30%). Plus you get dividends (HET doesn't pay dividends and returns are flat for so long). You can do better putting your money in Money Market account or even good old savings accounts that pay interests. Right now, I read "Money", "Fortune" (also available from website www.pathfinder.com) and TV show "Wall St. Week with Louis Rukeyser" on PBS channel. I also do my homework by checking Value-Line Investment Survey in local library and check the free S&P Stock Report from my discount broker before following recommendations too because it's my hard earned money from many tiring days at work. I've learned the hard lesson of over-reliance on one person (JD) to help me build wealth, but he really doesn't seem to have the subscribers' interests in mind.