Saturday, October 02, 2004

Wake up America or Duratek turns bullish?

Wake up America or Duratek turns bullish? **(sorry I can't figure out how to post and get sentence seperation, don't now if it is a feature to create seperation and paragraphs)

Well, not exactly, but I got you didn't I?I just spent 3 hours in my store with an enlightening fellow, runs an investment firm, taught by SAME GUY who taught Warren his accumen.Always looking for the ying and the yang of the markets is VERY tiring, especially to those of us who have day jobs, so what do we do?How does one stay in the market, not lose his/her shirt and be around for those amazing up years like 2002-2003?ONLY buy companies with expanding earnings in businesses you understand like GE etc.You don;t understand tech or fuel cells or pharma etc, leave them alone IMHO, you like Starbucks coffee and the company is as I described...another kettle of fishThen you can perhaps with longer horizons, ride the ying and the yang of the markets.....can you SPOT value?Was INTC in 2002 $13, was that value? When GE fell to $18 was that value?Now of course, what do we do about owning it at $60? we need cash to buy bargains when others are throwing them away. Well, rare times like BUBBLE 2000 need to be avoided if possible, we have record valuations so there weren't many bargains then.BUT some companies did great,because they benefitted from lower int rates while the tech and alike were being pummeled.Maybe it takes ABILITY to take a beating and not panic,at some point won't GE challenge its old highs?Doesn't the market ALWAYS go higher over time?I will be looking, PFE has interest, MSFT ($3 3nd of year dividend still open to digest) and others which present the best of the best...selling at bargain prices.Is it worth paying huge fees to funds to invest your money? many time hidden fees?Look at gold over time, holding gold since 1980 was that a good investment? while real bull mkt was beginning and inflation was falling?You know, it still looks like its falling and benign....is gold for fear mongers? does it pay a dividend? with no inflation to back it up,IMHO gold in near term will fall.REAL profits can be handed as REAL dividends, investing in tech or anything just cause it may go up, is speculating.I think we will retunr to that kind of environment, where dividends, REAAL retunrs and profits MATTER! Not the BS pro forma we STILL have and the companies which hide pathetic earnings by NOT expensing stock options.They make them selves rich to detriment of their investors.
Duratek

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