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Technology Stocks : America On-Line: will it survive ...?

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To: Michael Strope who wrote (2729)4/6/1997 12:40:00 PM
From: James F. Hopkins   of 13594
 
HI Michael: RE when AOL goes down I lose Money << <G> u dont
lose or make any money untill u sell the stock.
Except if you have her on margins and a run down causes you to
have to make margin calls..or sell something else at a loss.
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The up and downs may change the paper value of your portfolio
but if your not on margins that's no big deal. AOL is on an
uptrend..so far that has not changed..that she has some wild
dips would worry the heck out of me if I was a long term long,
as the dips do not indicate any stability at all. You got to
know she is being manipulated..and subject to be discarded by
some institutional invester at any time. Too many institutions
own to much of her..if one of the big ones dump out it will cause
her to fall like a rock, if they were spread out better and the
public had more she would not be so wild.
Good luck with your long position, but if you have profits,
I'd sure take them Monday or Tuesday..and re-enter on a dip,
that is if I were bullish on her..which I'm not.
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But don't get me wrong I'm not above buying a few calls when
she dips below the 50 DMA...can't set a price as to were that
is as it changes..and is in an uptrend cycle.
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What you see on this thread is "traders"..more than investors,
at least in respect to AOL. Not that I don't invest in some
stocks..and you might even say to some extent AOL..but I'm
invested in her at a much lower price than the bullish type
person is. If she goes to 20 I'll take my profits and
make money, provinding she does it some time this year,
and when the lawers get finished with her I think she might
go lower than that. She has some nasty charges being held
over her head..and even if she is found not at fault, it's
going to cost her a big bundle. No way that many Lawers are
going to go away empty handed.
Jim
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