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 : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: LindyBill who wrote (37811)	8/7/1999 10:58:00 PM
From: Boplicity	Read Replies (1) \| Respond to of 152472

Good for you. My comments were about near term, which is noise in the long run. Greg

To: LindyBill who wrote (37811)	8/8/1999 12:20:00 AM
From: RoseCampion	Read Replies (2) \| Respond to of 152472

Semi-OT: need some tax explanations from you more seasoned pros. After the shenanigans in the market last week <g>, I've got a little margin call situation at Fido to take care of. No big deal, not to worry, more an inconvenience in timing than anything. My question is this: let's say to do make Fido happy I elect to sell off the last lot of Q that I bought, which for argument's sake we'll say was 1000 shares bought @ $150 and sold at the current price of $148 - hence a $2/share paper loss. Having met the call and then closed out some other positions and/or deposited new funds a week or so later (the basis of the timing problem presumably resolved), I then buy back the same 1000 shares - let's say the current price is $154. (Hey, that's what happens when you're away from the good lady Q for any length of time. :) My question is this: I know these transactions come under the IRS wash sales rules, and that I can't take the original $2 loss as a 'real' loss on my taxes - it's as if the first sale never happened, right? But what is my new basis in the 1000 shares I own again - still $150? $154? $150-148+154=$152? And when does the long-term capital gains period now start - the day I bought the original shares or the day I bought them back? For extra credit: what if instead of repurchasing the shares at $154, Q has dropped in the meantime and I re-buy the shares at $140 instead? Does that change any of the answers above? Advice and knowledge much appreciated; thanks. taxingly, -Rose-

To: LindyBill who wrote (37811)	8/8/1999 12:29:00 PM
From: DaveMG	Read Replies (5) \| Respond to of 152472

I see no reason to believe that the market will pay less than 50 times earnings for Q. This gives us a price from 200 to 300 next year, no matter what direction the winds are blowing. What we have to watch out for is overall market PE compression due to "the changing winds", something which most likely even the Mighty Q is unlikely to be immune to. Even though I was a buyer last week because I also think the last earnings report IS NOT reflected in the stock price, the overall conditions are making me wonder whether I did the right thing. True enough, Q shook off the downdraft pretty well, but all it takes is some PE compression to say a forward PE of 40 and we're essentially at fair value right now. Those of you who've been around here for a while know that I'm a fan of ex CNBC tecnical analyst John Murphy and his website at murphymorris.com. They've got some interesting charts on their site this weekend which show that the top in internet stocks, interest sensitive groups like Banks and brokers, consumers, all coincide almost perfectly with the beginning of what is proving to be an uptrend in commodities and interests rates, and the stock groups that benefit from such a scenario. These are "winds" which we haven't seen in a while. One of the most disturbing charts shows a divergence between the DOW Transports and the Dow Industrials. I'm sure everyone remembers what happened last year. This time round the DOW and big tech has held up fairly well, SO FAR. What's next? The thing I find most troubling though is that if these are winds of change driven by world wide macro economic events, ( take a look at the dollar), then a market sellof might not result in the kind of bounce we've all become accustomed to. Mqaurice... Any idea how high the price of oil might go? Aren't we almost there yet? What's the URL for that oil industry web site you posted last year? Thanks... Dave