mentoring, page-5

Mich.

Whilst folks like Huntley are OK, you can still loose on their calls.

However, Huntley is good to learn from because he uses fundamental analysis, which is setting "BUY", "ADD", "HOLD", "REDUCE" and "SELL" ratings based on PE ratios and dividend yields.

(However occassionally he follows the market, eg ABS, and gets burned by making a buy call on a too high PE ratio).

It is important you grasp fundemental analysis.

For example, AFG is currently trading on a PE ratio of 10.6, which is very, very cheap. AFG is not going to the grave and sub-prime will not affect it and the current purchase of Rubicon is OK. Come February 2008, AFG will post its good profit as normal and the share price will return to $9 or $10 or more.

The important thing is the PE ratio. It is currently low or cheap therefore now is the time to either buy or hold but definitely not the time to panic and sell. Be patient.

Look at my recent analysis on the share UXC on this site. See how I picked the bottom and analysised the cheapness of the share.

It is very important you be able to do what I did. This is the basic, foundation , fundamental knowledge (although many will say it is unimportant).

The most important thing is the price you BUY at rather than the price you sell at.

Good luck. Sincerely.

V