Silicon Investor (SI) -- The First Internet Community

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 : CMGI What is the latest news on this stock? -- Ignore unavailable to you. Want to Upgrade?

To: badon518 who wrote (11764)	7/14/1999 10:14:00 PM
From: Mark Peterson CPA	Read Replies (2) \| Respond to of 19700

Sheeeshhhhh! I'm not qualified to tell you what kind of risk you can take to bed with you at night! I still sleep with a pile of pillows around me... But Softbank and Cmgi are both companies at the front of where commerce will exist in 3 to 5 years. Although others believe that Softbank has a broader, world market compared to CMGI's focus on US markets, those who believe so miss the point that in this new internet world, there are few, if any virtual geographical borders. I just don't know how I would hedge a substantial position in Softbank in a cost-efficient manner. And for that principle reason, the capability of hedging any net long CMGI position through derrivatives makes holding this stock less of a risk compared to Softbank, IMO. Of course, the hedge never works if you never sell or buy the derrivative (call or put option). And when they work, they may or may not function as well as you intended when you initially set your position. Markets are two sided, largely driven by the continuous rebalancing between fear and greed. The use of derrivatives puts a halter on greed and softens the spectre of volatile market movements as well as the fear that is often driven without sufficient notice, straight through our hearts. And it's this use of derrivatives that allows you to sleep somewhat comfortably at night, ensconced between your pillows, of course... Mark