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Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)

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Ricardo Marty
Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 1:18:34 pm

"Legendary investor Warren Buffett advises to be fearful when others are greedy, and be greedy when others are fearful. One way we can try to measure the level of fear in a given stock is through a technical analysis indicator called the Relative Strength Index, or RSI, which measures momentum on a scale of zero to 100. A stock is considered to be oversold if the RSI reading falls below 30."




http://www.forbes.com/sites/dividendchannel/2013/08/19/oversold-conditions-...


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Joseph W. Bourke
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 3:26:05 pm

So what does that have to with whether anyone goes for CC or stays with CS6? Looking at the chart, the selloff which is currently happening is at a much lower volume than that while the stock was climbing, which usually means that some antsy investors are just taking some profit, and will most likely buy back in at a later date. And actually, if you read the article carefully, the consensus is that it's time to start buying Adobe stock again.

I don't own Adobe stock, so it doesn't effect me, but taking that one paragraph out of context makes it look as if Warren Buffett is implying that Adobe is greedy, and also that it's time to dump Adobe stock. Neither seems to be the case...

Joe Bourke
Owner/Creative Director
Bourke Media
http://www.bourkemedia.com


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Walter Soyka
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 6:18:22 pm

Oversold literally means "sold too much." To be clear on what "oversold" means, just flip it around -- oversold means "underbought." In other words, the stock is priced BELOW its true value.

In other words, putting words into Warren Buffett's mouth per your quote, he is not warning you against buying ADBE. He'd advise you to be greedy now and buy, buy, buy now that others are fearful and it's a good value.

From Investopedia:

Definition of 'Oversold'
1. A condition in which the price of an underlying asset has fallen sharply, and to a level below which its true value resides. This condition is usually a result of market overreaction or panic selling.

2. A situation in technical analysis where the price of an asset has fallen to such a degree - usually on high volume - that an oscillator has reached a lower bound. This is generally interpreted as a sign that the price of the asset is becoming undervalued and may represent a buying opportunity for investors.

Walter Soyka
Principal & Designer at Keen Live
Motion Graphics, Widescreen Events, Presentation Design, and Consulting
RenderBreak Blog - What I'm thinking when my workstation's thinking
Creative Cow Forum Host: Live & Stage Events


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Joseph W. Bourke
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 6:45:47 pm

Hi Walter -

Thanks for a much more detailed representation of what I was trying to say. It's time to buy, not to sell.

Joe Bourke
Owner/Creative Director
Bourke Media
http://www.bourkemedia.com


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Rainer Schubert
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 9:30:01 pm

Oversold.
Right.
But there is no sign, that Adobe is below it´s/a "true" (?) value.
(BtW Warren Buffet didn´t say anything about Adobe)
In my eyes no one can really estimate whether Adobe is above or below it´s true value.
The way Adobe took is a very, very risky trip.
Their future business is based on self made estimations only.
Throwing away half of their users and confusing 90% is a very special way of business.
The future of cloud is a "?", their image lack is enormous, but their marketing tools are selling good.

Only time can tell, where Adobe is going in future.
But I like every percent they loose at wall street.
I don´t like to see others follow.
It´s only strengthen the situation of software producers.
And degrades customers - especially the low budgeted ones.


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Walter Soyka
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 9:42:57 pm

[Rainer Schubert] "But there is no sign, that Adobe is below it´s/a "true" (?) value... In my eyes no one can really estimate whether Adobe is above or below it´s true value. "

Dammit, Rainer, I'm a designer, not a stockbroker. :)

Ricardo's article is about a technical indicator that suggests that ADBE undervalued. I have no idea whether that's true or not, or what Ricardo was getting at by posting this article and the selective quote. I just tried to put a little context around it.


[Rainer Schubert] "(BtW Warren Buffet didn´t say anything about Adobe)"

I did say straight up that I was putting words in his mouth based on Ricardo's Buffett quote. Sorry if I was unclear.

Walter Soyka
Principal & Designer at Keen Live
Motion Graphics, Widescreen Events, Presentation Design, and Consulting
RenderBreak Blog - What I'm thinking when my workstation's thinking
Creative Cow Forum Host: Live & Stage Events


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Rainer Schubert
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 10:08:29 pm

[Walter Soyka] "Dammit, Rainer, I'm a designer, not a stockbroker. :)
"


Me too ;) (Designer and not broker)
But as you answered...
No harm meant!


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Walter Soyka
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 11:14:54 pm

[Rainer Schubert] "No harm meant!"

And none taken -- just trying to keep the mood light with a goofy Star Trek reference.

Cheers,

Walter Soyka
Principal & Designer at Keen Live
Motion Graphics, Widescreen Events, Presentation Design, and Consulting
RenderBreak Blog - What I'm thinking when my workstation's thinking
Creative Cow Forum Host: Live & Stage Events


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Ricardo Marty
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 10:28:36 pm

when a stock is oversold itmeans that for what ever reason its is being sold because the sellers think its not worth the money or will tank. this is only good for buyers so if any of you think that adobe is worth a gamble this is your chance to buy.

ricardo


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Rainer Schubert
Re: Oversold Conditions For Adobe Systems (ADBE)at Forbes(Mon, Aug 19)
on Aug 20, 2013 at 11:57:17 pm

[Ricardo Marty] "when..."

when... !


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