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By Jonah Keri
Investor's Business Daily
A dollar for a lobster dinner. A Lexus at a Toyota price. We're all out there, looking for that killer bargain.
Lately, some of the biggest-name stocks may look nearly as appealing. Cisco at $24! Oracle at $22! Ericsson at $8! Everything must go!
Don't be roped in. That Lexus you think you're buying could have the guts ofa 1986 Yugo. You almost always get what you pay for.
The same is true in the stock market. Yet bargain hunting remains a sacred cow to many pundits. If a stock is a good deal at $40, they reason, it must be a great deal at $25. Buy low, sell high, they advise.
The roaring bull market of the mid- to late-1990s shoved bargain hunters into the background. With techs headed sky high, no stock worth its salt came cheap.