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At 10:53 AM 3/15/98 -0800, Alberto Torchio wrote:
>Why should anyone care about the stock's price? Just trade odd lots!
>
>Alberto Torchio
> Torino, Italy
>
>
Alberto,
I agree. Usually the low price indicates it is a higher risk.
I did not say always. Along with that risk there's a chance
(not probablility) that it will appreciate faster than the
blue chips.
There's been some talk here on the listserver and by analysts
in the Wall Street Journal (and other places) that low priced
and small cap stocks will become heavily sought after when the
market reaches the top. That's when people catch on that one
side of risk is lost opportunity and don't want to be left out.
To me it would be a sign of irrational exhuberance when you see
several things together, that we haven't had for some time. That's
when you have several almost straight up months on several market
indices, confirmation from transportations, stronger up moves in
the Russell 3000 and other similar ones, and then you also hear
that the cookie jars get broken to put every last cent into odd lots,
especially if the focus is also then on low price stocks. Throw in
new highs in average market PE multiple, new highs in total inflow
into stock funds, Consensus index very bullish, as well as Market
Vane and AAII. Also watch for a swing from +5 or+6 score among
Louis Rukeyser's elves to zero and then minus (-4 to -6). There are
probably more. Could high volume of mail on this listserver also
be an indicator?
Pete
P.S. To me the indicators average out to somewhat bullish right now
and they have been higher in the last 12 months than now.
petena9090@xxxxxxxxxxxxxx
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