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Technology Stocks : Qualcomm Incorporated (QCOM)
QCOM 177.78-2.2%Jan 9 9:30 AM EST
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To: Jacob Snyder who wrote (75423)7/5/2000 8:22:07 PM
From: waverider  Read Replies (3) of 152472
 
Jake...two things happened today that were important in my decision to cut back on QCOM.

1. After the 90's were violated, I had a $60 mental stop loss on my retail account. I made the decision awhile ago. The market made the move and so I executed my plan. I was not willing to let this account drop below a certain value.

2. I got a call from a friend this morning about the importance of preserving one's capital to maintain the lifestyle selected. If QCOM were to drop much more, that lifestyle I had selected for my family would have been at risk...especially since so much of our money is in the company. I was not willing to risk that. At this point the risks of a slow burn of option premiums for the 2002 Leaps I held were too great.

I still hold a significant portion of QCOM stock and 2002 Leaps in my portfolio. Fortunately I converted the 2001's back in March to 2002's...otherwise my option position would be close to worthless. My nervousness about holding short term options (which the 2001's became) was an important factor there.

So if we skyrocket in the next 6 months, I'll be very happy. If we tank, I will be sad BUT I will still be able to maintain our selected lifestyle without going back to work. And believe me...there are a number of folks that I know first hand who have HAD to go back to work because their portfolios went into self destruct since January.

This has been a difficult ride for all of us. The important thing to remember is to set the bottom line and not let hope change your mind. QCOM is an outstanding company, but there are too many risk factors and FUD monsters out there now for me to have my neck stuck out on the line.

I know I have been the perma optimistic bull here, but my situation demanded action. Everyone else needs to look at their own situation and make decisions that make sense for THEM. That is why I have always gone after people who claim to know the future and encourage or scare people into some kind of action they may later regret. The poster may be a millionaire, a full time gambler or whatever...but those who are reading and playing with their total savings of $15,000 or whatever need to take that into perspective. Everyone has a dramatically different profile.

I was willing to watch the stock go from 170 to 60 because at 60 I still have a huge gain and would still be able to maintain my selected lifestyle. That is not the case with many.

Now all we need is for one of those rude SOB's that have vanished to come back and say insulting things to good people who have lost their shirts. Let's hope not.

Jake, to answer your questions: I am holding the cash for now and probably will until October. Some of the money I am going to use to pay off the final chunk of the home equity loan I took out to finish my landscaping stuff.

Good luck. And remember to write this one down in your stock journals.

Rick
who can't write the little diamond h thing because SI is going through PMS...
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