SAP A.G. Message Board - Msg: 7634884

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Technology Stocks : SAP A.G.

SAP 244.83

-1.0%

Dec 12 9:30 AM EST

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To: Doug who wrote (3048)	2/3/1999 11:57:00 AM
From: edamo	Read Replies (2) of 3424

new to s.i, and apologize if i'm intruding on your query of when to average down. i'm a common sense investor and make decisions on what i know...not what an analyst or a broker or barron's believe they know...sap referred to as a "gorilla" by salomon (isn't msft and intc in the same category of gorillas?)this is the prime buy and hold candidate...sap is building a massive north american headquarters facility about five miles from my location, the majority of my fortune 500 and utilty customers have converted to sap over the past quarter. this is a positive sign,as is heavy short interest. now for your situation, you may want to consider selling calls against your long positions if you believe the stock is in a downward trend...this will reduce your cost basis. i'm doing the opposite by selling puts against cash...good income, and if put to me, i want to own the stock. a key indicator for me is the value of leaps on the underlying issue, sap started trading leaps this week...look at the premium on a jan 40 2001 call contract (symbol zspah) recent bid/ask in the $10 range...that means someone is willing today to pay a $10 premium to call the stock away at $40 in jan 01...pretty hefty premium for a $30 stock....good leading indicator...options volatilty, i'm tend to be a bit verbose of that which i believe in!

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