Jeff:
Responding to your statement "I own CPQ and DELL, wondering what to do with future investment capital"
1. You have come a long way already and will certainly have some
more to invest if you continue long term to hold them.
2. You are asking the right crowd as if you asked a broker he would probably recommend an IPO or other new
issue of which his boss has already purchased xxx mil shares
(to get the commission and perhaps 20%)
3. Something like 60% (very roughly) of Americans now own stock in some fashion( like mutual funds,IRA's,etc). Happy, secure
retiremenet, can concentrate on job,family daily interests.
Will settle for 6%, 12% growth...Not so here.
4. Here we look for the next IBM, which is now called looking
for the next DELL.Plotting stock prices via Stockmaster,shows
that 100 to 200% a year returns are available on rather secure issues. Many will be found in the tech/telecommunications business.
Having perhaps said nothing useful yet,will state my honest opinions:
MHO
1. DELL is still the 'the next IBM' .Been looking hard, not finding one.No way to prove it, is there?. So keep the DELL.
2. If you have a rock to sit on(good wife, job , home ownership) as I do then venture out a bit and play will some options.
3. CPQ success looks very good, very similar to DELL.Keep
some of it.I don't own it, seek others advice here too.
4. If you own only those two stocks and watch the market every
day you better have real guts. To see the market down 150
points and "paper profits' down by several grand is tough.
So I mix the techs with some real solid stuff like banks.
BAC,NB,CBM, or Home Depot, perhaps Walmart.
5. Asking advice about investments is like asking 4 economists for their opinion -you get 5 answers.
6. If you are considering fast trades on daily or weekly basis
I can be of little help.To add a bit of spice and excitement while riding this Dell ship, I love stock splits.
Buy as soon as you can when you sence one coming( like when
the compamy appoves addition shares) and sell directly after it splits( excepting DELL)
7.Stay curious, keep asking questions of jbn3,Pat,William,Rosemary,but make your own choices.
8. Experiment lightly and you will soon get a feel for it.
I bought my first options on AMD,QNTM,and WDC last week and
got fried,but was prepared for it.Why?? Because I needed experience in buying Dell options that cost 10 time as much. Sorry to be wordy, not an easy question,but you should do well. Enjoy the ride,we are not 'out of gas' yet.Do not expect total sanity, IBM and DELL rides are exhilerating.
Sincerely
Sig
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