PMC-Sierra (PMCS) Message Board

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Technology Stocks : PMC-Sierra (PMCS)

PMCS 11.65

0.0%

Jan 25 4:00 PM EST

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To: Marc Bourgault who wrote (3549)	7/9/2000 5:58:11 PM
From: Book Bag	Read Replies (1) of 3818

Hi Marc, I hold PMCS in my RRSP and it's definitely foreign content. Even though the company is based in BC that's irrelevant as it doesn't trade on any Canadian exchanges. It's where it trades that counts not where the company is domiciled. Sorry, but your discount broker had it wrong. There isn't going to be a more understanding broker if you think that one will allow PMCS to be classed as Cdn content! That said, I have 100% foreign content in my husband's RRSP and mine is only saved by substantial holdings in JDS Uniphase. I pay the 1% per month penalty to get the kinds of returns I get from the US tech stocks - most of which is now in LEAPS and mid-term options. I even cashed in my Nortel shares and bought US Nortel LEAPS as the return is better even though I have to pay the 12% annually on the original investment. PMCS is up 138% year-to-date so I don't mind paying Rev Can their piece of the action. Well, I do mind but I'm not so keen on the alternative and that's having 75% Cdn content. If you have a large position in a Cdn stock that has gone up a lot since you bought it you can do what I do with my JDS. Every time it doubles in price I sell it and buy it back immediately - that increases my book value thereby reducing my foreign content. My broker (Merrill Lynch) does this for a nominal fee in both directions and it's well worth it. My RRSP's current foreign content is 40% and it would be closer to 80% if I hadn't traded JDS like this. If JDS does a nice run to earnings then I'll sell and buy back again and I should be close to 25% foreign content after that. Sorry I can't give you better news. Regards, BB

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