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Subject:  Gaining Share in a Down Market Date:  3/29/2007  11:16 AM
Author:  ngannet1221 Number:  4646 of 4668

It's been many years since I read Beating the Street, but I remember one piece of wisdom regarding cyclical stocks.

In cyclical industries a well-run company will weather market downturns, seeing their business rebound when the market swings upward. However a well-run company that also manages to gain market share during the downturn will be in position for much faster growth on the market's upswing. Lynch gave a numerical analysis showing how this works and Applied Materials' stock subsequently reflected this effect during the 90s.

Here's a question I'm working on, and inviting comment: Who's gaining market share in the housing industry, which is now in a downturn? Might be too soon to tell, but it's definitely not too soon to investigate!

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