Trust your LCD

Date: 2006-10-21

Ticker: MMM

Event:: MMM 3Q result release

Title: Trust your LCD

Content:

Have you once noticed the brand of your shirt’s buttons when you dress up? Have you ever wondered who makes the closure when you open a wine? If so, follow me.

Headlines are mostly dominated by “models” like GOOG, MSFT, INTC, etc. But look deep and you’ll find the tailors and cloth producers at backstage. They are always there.

Check out Dow30 and you will find some big names: JNJ, DD, MMM, PG……

They are upstream and I like this strategy. In a gold rash, best way to make big money is not to be a gold rasher but a service provider. Like Wall Street? Be Bloomberg or theStreet.com. Like eBusiness? Be PayPal or Verisign. Speaking of LCD, what you see is not what you get. What you can’t see is what you should buy. Samsung, LG Philips, Sharp, are you going to predict No. 1, 2, 3? But 3M may get benefits from all by its optical film.

It doesn’t mean upstream is always heaven or Dow30 are always God lovers. They may fluctuate, even slump overnight, but this fluctuation is more like true fluctuations. It should be textbook samples for chartists, should be picks of fund managers, and should be top considerations in your long-term portfolio. Just need the sense of fundamental to spot bottom and trend.

Things will be just fine
You and I'll just use a little patience

-Guns N’ Roses, “Patience”