Ask Colin

Do the stocks you write about in your Trendlines columns always conform to the value stock selection method in your article in April 2002 Shares page 72?

Do the stocks you write about in your Trendlines columns always conform to the value stock selection method in your article in April 2002 Shares page 72?

The article in April 2002 Shares is about value investing. The editor asked me to write about this to be in tune with the theme of the issue which was great investors. The value approach has been the method used by several of the great investors.

When I pick stocks to write about, they can be chosen for any number of reasons. In Shares magazine Trendlines columns, I usually look at one potential buy and one potential sell. I do not always rely only upon the value approach. It is primarily a technical analysis column, so the chart is the main focus. However, I do take the fundamentals into account. In the case of SKE, I commented that its chart met the value model. Its fundamental ratios indicating value are higher than those in the article, but not in the strongly over-valued range that would suggest high risk in a bear market.

The reality is that there are many ways to make money in the markets. I also have a broad audience, so I tend to vary the stocks I talk about to cover everyone's interest. Hence the warning that SKE is not suitable for all investors.

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