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Technology Stocks : INTEL TRADER -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (4731)	11/27/1998 4:01:00 PM
From: Berney	Read Replies (1) \| Respond to of 11051

I2, Re: Chicken Pox and Other Sicknesses Isn't that what the market is all about? The constant battle of the bulls and the bears. Who will blink first? The problem with the internuts is, not only can you not use FA, but TA doesn't work either. That's what makes the buying very difficult. But, my statement on FA IMHO applies to these market conditions in general. Let's look at GE, one of the finest companies on the face of the planet, and one of the best stock performers as well. Its average PE for the last 6 years was 20.6. It currently has a PE of 34.4. It is expected to grow its EPS 14% from this year to next. So, its selling a premium of 50% to its historical PE ratio and about 2.5 times its projected growth rate. It represents absolute insanity IMHO. There are good values in the investment universe, but if the market does not recognize the value, what good is it? No matter how good a value CAT might represent, if the market sells off, CAT will probably go to $40 again. If you bought it at the end of last year, you would have done better in a CD. If you bought it in June ... well ... Does it make sense that DIS stock is rising based on how well their current movie is doing at the box office (let's hear it for bugs)? What possible impact will this movie have on its bottom line or its future? Yet, because the movie is doing good, the stock is going up. I'll admit that it makes absolutely no sense to me. Bottom line is that I've stopped looking for value until value is of importance again. In the meantime, buy them while they are going up and try to timely sell them. Repeat process and smile. Berney