How high will Microsoft fly? Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : How high will Microsoft fly?

MSFT 478.29

-1.8%

Nov 20 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Catcher who wrote (20645)	4/18/1999 12:57:00 AM
From: John F. Dowd	Read Replies (2) of 74651

Catcher: Who can figure this one out? This rotation thing baffles me. To make the math simple let us assume we own MSFT at 100 with a basis of 0. We sell MSFT and after we pay tax are left with 72 to 80. We then invest the proceeds in "Beer Cans of America Inc. (cyclical)" and it goes up 50% to 98 - 120. We now sell BCOA and rotate back to techs. After tax we will have at best 120 -(40x.28)=109 (9% above what we started with ) to reinvest in MSFT and lo and behold we missed the big initial move in techs as their earnings explode. These rotaters must be perfect in their timing to squeeze out the profit to make the round trip worth while. I can't see leaving growth stocks to jump into low priced Dogs of the Dow just to be drawn back to the real leadership in our economy. In short I don't get it either!#? JFD

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next