Roger Montgomery, CIO of Montgomery Investment Management, says while stocks don't look cheap the market still has further to run. Montgomery identifies the current market as being in the second phase of a Bull Market - where earnings per share growth is required to justify higher prices. He says this is a process that is staring to come through where companies like Veda, Sirtex and Ainsworth Gaming will deliver very strong profit and EPS growth. Montgomery says that whilst these names represent fair value they are still some of the cheapest stocks in his portfolio. The third phase of a Bull Market is called the blow off top - where valuations start to go through the roof and people start paying any price for rubbish. Montgomery says this could still be two years away and that will be the time his cash holdings go from 30% to 50%.