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I'm not a subscriber to the Cabot Market Letter, but I've been following the saga of this momentum newsletter closely as a prime example of a quasi-pyramid speculative bubble. How much the bubble was fed by illegal manipulation, collusion between market makers, the Cabot newsletter and associated funds, and such practices as stock parking will no doubt be thoroughly investigated by the SEC, but the question for holders of these stocks should be "When will the fall end and what should I do?" I think some of the stocks of good companies will fall less than others, though they are all overvalued. Presstek is the most egregious example of overvaluation, probably by a factor of 10; which of the rest might be buys, and where? Should holders sell now and wait for a few months to buy back the good companies, or should they hold on and hope for the best? | ||||||||||||||
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