SHREVEPORT, La., April 24, 2006 (PRIMEZONE) -- DonHarrold.net (IARD #119079, http://www.donharrold.net), rates Broadcom Corp Cl A (Nasdaq:BRCM), 3Com Corp (Nasdaq:COMS), CMGI Inc (Nasdaq:CMGI), and Amr Corporation (NYSE:AMR).
DonHarrold.net provides unbiased stock ratings from registered investment advisors. DonHarrold.net issues daily market commentary and features a member's area with detailed information on widely held stocks.
Important Stock rating Changes:
Broadcom Corp Cl A (Nasdaq:BRCM)
DonHarrold.Net Rating: Sell
http://www.donharrold.net/ratings/US/BRCM.php
3Com Corp (Nasdaq:COMS)
DonHarrold.Net Rating: Sell
http://www.donharrold.net/ratings/US/COMS.php
CMGI Inc (Nasdaq:CMGI)
DonHarrold.Net Rating: Sell
http://www.stockpickreport.com/abrating.php?sym=CMGI
Amr Corporation (NYSE:AMR)
DonHarrold.Net Rating: Sell
http://www.donharrold.net/ratings/US/AMR.php
DonHarrold.net Commentary -- April 24, 2006
Investing in small stocks could be way more active and fun than conventional investments, and the rewards come faster. Who said investors are effusive by nature?
However, if you read my other comments today you'd know that penny stocks (small stocks) are not the type of thing I normally recommend investors trade.
That's because penny stocks (and the options market) could be a zero-sum game, but only before costs are deducted. I've said this before and I'll say it again: "Daytraders are too inexperienced for down markets and only know how to trade up markets." And, by "up", I mean "when everything they hold is moving up".
And, that's just not the case right now. I've been saying that, "U.S. stocks are seriously over-valued." I continue to believe that. And, "small stocks" can take on the appeal of a high-percent gainer in times like this, but I'd probably look more to buying opportunities in bigger stocks like Broadcom or AMR Corp as they pull back a bit.
I believe now is the time to let big stocks offer entry positions. I do not believe now is the time to wantonly get into smaller stocks as way to "beat the market".