Mehrdad:
OT: I agree with you that CSCO's valuation is completely irrational, but I don't care. I took initial positions in CSCO back in 1997 in both my IRA and my taxable account, and the only worry I've ever had has been how to keep the holdings under my self imposed 10% of holdings rule. I kept trimming the positions, they kept splitting the damned stock, and it kept going up, and the shares I wound up with had a zero cost basis for so long I quit worrying about the valuation.
That said, I am presently sans CSCO, having unloaded it at earnings time because I felt it was bound to pull back to at least the 50 DMA. It hasn't come close to that yet, and I now feel as naked as I did when I finally unloaded long term holdings in DELL and AOL. But I wouldn't be at all surpised to see CSCO split, trade sideways for a while, and be back above 100 by this time next year. Hopefully, I'll get a chance at a re-entry point when this market deflates a bit, and equally hopefully that deflation won't happen for the next week or so until well after IPO day for PALM.
I'm well above my 10% rule on COMS, but not for long. Good luck with your humongous COMS holdings.
David T. |
