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Politics : Ask Michael Burke -- Ignore unavailable to you. Want to Upgrade?

To: Ilaine who wrote (34681)	10/28/1998 1:40:00 AM
From: Lee Lichterman III	Read Replies (2) \| Respond to of 132070

I have to disagree on buying value at a low price vs the follow the lemmings off the cliff mentality such as buying 200 PE stocks because the rest of the crowd likes them. While you can do well riding momentum and hoping there is another fool that will over pay more than you did, (I have played DELL a few times myself) value at a a low or fair price works with patience and is much safer. How many bought K-tel when it was rising and who was left holding the bag when it fell back to where it all started this summer. Not us. On the other hand, puts on MU paid better on the way down than the calls did on the way up. Buying COO at a PE of 5 last week was safer than buying AMZN and the return was like an option even though it was a stock. FA and patience will get you farther than following the crowd unless you are in a bull market like we had the last few years. Unless you are only going to trade in an irrational exuberance market, FA is needed. There are few perfect companies. Even COO had high debt etc for a long time and thus it fell hard but reached a point where it was worth the risk. There are many theories and styles to trading, investing etc. Some stay in a trading mode that is extreme scalping 1/8 point in large quantities and holding only minutes at a time so for them momentum is good. I play options and try to use TA to time my buys after I have researched and made my picks based on FA so I can stay in them from weeks to months at a time. On the investing side though, time is irrelevant IMO and only good companies with solid FA and low PEs are a good play that can be bought, put in a drawer for years and forgotten about except to check occasionally to make sure no fundamentals have changed. Eventually, the market figures out who is worth what. Buy low and sell high. Lee