Mr. IrishMan,
I have just been an observer of LCOS. Was a player in SEEK. Am on sidelines now due to the uncertainty in the market.
A few words about internet and momentum and hysteria. Please don't take any of this stuff in the wrong way.
1. set your targets (high and low) for getting out and stick with it. If you're a 10 year investor, I think the internet is here to stay and LCOS will remain a major portal player, so sit tight. If you're overextended (i.e. margins), you may be in trouble. Short sellers thrive in these times and they're relentless.
2. this may be hindsight, but setting stop-losses (unless you're a 10 year investor-but even then, you can always sell now and buy back cheaper, but if you've got a real job, that may be hard to do) will help you keep from losing too much. You might get stopped out and then see your stock run up, but it's the prudent thing to do. Don't let this experience go without learning something. It may make you much richer in the long run.
3. internet hysteria goes UP and DOWN. Realistically, there's no rationale for these companies to be selling at these prices--they're all overextended and pricey. However, the free market being what it is, there are no rules and no rationale for these stock prices. You just have to be aware that when a stock price's high and low for the year is 10 fold different, something smells and the valuation rarely is justified.
4. Playing these stocks can be done by taking profits early or being a true believer and holding for the long term--so adding when it's down.
All in all, the internet sector is scary. The moves up and down come in chunks. Got to have an iron stomach to play. Might lose your shirt or gain a yatch if you play with a sizeable chunk of change.
If you want to dabble in this sector because it is so darn appealing, then let this sector make up a small amount of your portfolio. That way, you can sleep at night and not worry about going shirtless.
Of course, all of this is just in my opinion. Good luck.
mike |
