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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator

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To: Bill Harmond who wrote (3013)11/13/1996 11:50:00 AM
From: Reginald Middleton   of 24154
 
<So far this "formula" has worked mighty fine for me.>

I hear ya Bill, but my method has never failed me yet.

The only time I have ever made any real error is when performing short term speculation like the one I described with the near valueless put options. Keep in my that moves such as those don't prescribe to my investor theories, they are done for fun, and sport - risking nearly no money at all and standing to gain a lot from it. That is how I gamble, and it is much more profitable than Vegas or the lottery!

<Reg, Trying to apply objective cash-flow analysis to these criteria is bound to be inaccurate>

Like I have said (and as you can read from my other posts) before, it has allowed me to pretty much call NSCP quite accurately over the last few months. One simply needs to add a little market psychology into the mix. To invest in any fast growing market leader is analogous to a long "call on the industry." Nothing new there. Re: INTC, CSCO, etc.

< They said that the shares were most appropriate for institutional investors as a "call option" on the industry, implying that that the shares would be extremely volatile and appropriate only in well-diversified portfolios>

Calls are very easily valued as well, Bill. I have said just a few posts ago that I realy wanted a particular (and real) call on the industry (NSCP), but felt it was overpriced in relation to the mathematical model in which it was created in the first place. Simply because an asset is speculative does not mean it shouldn't be valued. I bet you cannot even name an asset that is not speculative in some form or fashion.
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