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Technology Stocks : Intel Corporation (INTC)
INTC 37.83-4.2%3:59 PM EST

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To: Amy J who wrote (123599)12/22/2000 8:04:06 AM
From: GVTucker  Read Replies (1) of 186894
 
Amy, RE: stock options

I have particularly seen over the past 6 months what might be called the "Cisco effect".

Lots of venture capitalists have sold companies over the past couple of years to Cisco in exchange for stock. The attitude for a lot of them has been, basically, keep the stock while it is going up, but if it starts to go down, sell it.

And over the past 6 months, a lot of them have been selling the stock.

So while a pooling of interests was a highly efficient way for Cisco to build their business, it is coming back to bite them right now.

BTW, I like your perspective right now on the market. The only reason we've seen such a sharp decline in the Nasdaq now is because we saw such a sharp rise in the year prior. Hopefully we've just corrected that imbalance. I think it is notable that the Dow and the S&P are far less than 20% of their respective highs.

Things aren't falling apart. And they might not. The good news is that a whole host of people who thought they could make a ton of money without working at all are getting a harsh dose of reality. And going forward, there will be a healthy appreciation of risk in the markets.
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