re: mul - 5 questions from grant62 Grant,Your five questions are...

re: mul - 5 questions from grant62 Grant,
Your five questions are correct and your fundamental research cannot be faulted. I take my hat off for your contribution and value-add to this forum. Yes, fundamentals cannot be ignored and must always be used as reference point and a daily guiding factor when investing in the stock market.

However, to illustrate my point here are two contrasting scenarios.
1. TLS has fantastic fundamentals but its share price is still falling (ref. 5 year chart**)

2. MUL has r/s**t fundamentals (atm) but its share price is rising (500% + ).

Now, (assume that we leave the risk/reward argument out of it for the moment) if you analyze these two scenarios, the rationale for investing solely on good fundamentals does not make any sense here.

Hence, the question begs:
What is the investment basis to make "serious money" in the current stock market environment?

Is it a thorough understanding of:
The stock's current & historical fundaments? …or

Is it the understanding of:

The stock's future fundamentals?

My experience in the market tells me that share prices react to perceptions of future value. e.g. my decision to invest in MUL was based on research into the future trends in the telecommunications industry (10-20yr view) the second but very important consideration was the quality of management and its ability/track record to form strategic global alliances in the telecommunications 'value delivery chain'. Yes, I have considered MUL's current b/sheet fundamentals but they were a distant fourth in the rank of importance. (Bad fundamentals are not always terminal and are easily fixed by injecting additional venture capital) in MUL’s case, this was not an important issue for me.

Using "future value analysis" is not my only approach however in this instance it was a reasonable basis for my investment decision in MUL. Arriving at the decision to invest in any stock is relatively easy, staying and believing in that investment is not so easy. It is in this department that our true ability to make or loose “serious money” is tested.

Therefore, what are the factors that will keep me in MUL for the long haul?

Grant, I do not intend to answer this question unless you and I want to write a book this weekend.

Perhaps others can add some further value here…..

Keep-up the great work
Cheers

**Ps I believe TLS is turning bullish (ref. 1yr & 3yr chart)