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Technology Stocks : Intel Corporation (INTC)
INTC 34.50+2.6%Nov 21 3:59 PM EST
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To: Amy J who wrote (87241)8/26/1999 9:27:00 AM
From: Paul Engel  Read Replies (1) of 186894
 
Amy - Re: " When INTC has a run up, do you generally keep it in INTC, or do you redistribute a bit of it? I recently lightened up a little bit on INTC because it, as a % of total, had increased in the last month."

I never sell Intel stock.

That "habit" both accelerates my gains in the good times - such as now - and reduces them during to major pull backs. The quite "cyclical" nature of Intel's stock makes this ride quite an ordeal - and many people are not willing to put up with the gyrations. I don't necessarily blame them.

However, Intel's history - and their stock performance - has ALWAYS shown recovery and growth from any major pull backs. In other words, a very long term holder has ALWAYS PROFITED - and profited greatly - from buying and holding Intel stock.

Clearly, selling at or near peaks of Intel's stocks and redeploying those profits into a faster growth stock is a better bet - if you can do it.

But remember - when you do sell, your profits are diminished by taxes - perhaps as high as 38% in some cases. So, you are reducing your gains by that amount. Merely holding Intel's stock allows one to suffer a 30% to 38% pull back - and essentially ignoring it because the government would have taken nearly that amount if one would have sold it at the peak.

By the way - selling covered call options on your Intel holdings is a method to generate profits from your Intel holdings and still gain on the upside should Intel's stock run up to the option strike price - at which point you can then have your stock sold or you can "roll" the call option forward and do it again.

Paul
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