To: Michael Young who wrote (3025 ) 6/4/1999 4:09:00 PM From: michael r potter Read Replies (3) | Respond to
Michael, Look, if it doesn't agree with my pre-conceived ideas, I ignore it! , just kidding. SFE usually doesn't do to well under that condition, and I'd be the first to admit that the technical picture could look a lot better. As stated in months past, I just use my limited knowledge of TA as a tool of many that help me reach conclusions. I'd like to know what a good point and figure person thinks about SFE right now. That is an area that I know little about, but that may hold promise for further refining entry and exit points. It looks like in Elliott Wave terms, SFE has just completed 5 waves down, and should be good for at least a 3 wave counter-trend rally. Again, not clear cut as the bottom of wave 3 was higher than the bottom of wave 1 and the intensity of wave 3 was less than wave 5. Other interpretations on the wave count? Todays volume better, and IMO, yesterdays low will hold for some time. The long term stochastic from the ASK research sight has been pretty helpful this year. After today it should either be crossing over to a buy or be just a whisker from it. From a fundamental standpoint, ICG is desirable and has a very bright future. SFEs involvement with it and continued ownership after the IPO is a real plus. Wouldn't seem like a buy in the $60s will look to bad over the longer term. IE, SFE not exactly cheap, but not way out of line either, given their ability to enhance shareholder value over the longer term. One simplistic way for a long termer to view SFE is that their goal is an Internal Rate of Return of 30%. Over time the stock should track that. If the stock goes sideways a couple of years it will catch up, and if the stock goes way above trendline, it will pause for the growth to catch up. In any case, to be with a company that has shown the ability to compound at that rate, is a road to eventual riches, despite the markets short term euphoria and despair that jerks the stock all over the place and which true long termers can look at with some amusement. [I have not been to amused over the last few weeks, so I guess I still have some work to do to be a true long termer]. Ah the weekend- so cool, can't lose money for two whole days. Have a good one. Mike
