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To: gdichaz who wrote (6619)	8/14/1999 2:48:00 PM
From: Paul Senior	Read Replies (1) \| Respond to of 60323

Well, once again I will comment that I do not agree with not taking profits. I do agree that since all have different goals and objectives and risk tolerance levels, and we don't know each other's portfolio management methods, any comments must be taken in that light. Here are some of my comments (not directed to any specific individual): 1. What is the goal of this investment? If it's to make The Big Killing, and you're not there yet, then HOLD. If it's to pay for a house down payment, and you're there, then SELL (at least for the down payment). If you need the money now....then... I've lost it. Why would anybody invest in SNDK who would not have funds elsewhere to draw from for planned money needs or unexpected money needs? Which circles me back to what is the person's objective and the portfolio content. Are we talking a one trick pony--bet every cent on one stock or maybe SNDK is part of a very concentrated portfolio? The majority of one's stock/cash/bonds way overweighted by SNDK? Then if you have to ask when to take profits, you need to take some profits now. 2. What is the purpose of your investing? If this is THE ONE, the one that is going to make it for you, the one that is going to let you quit your job, the way out of your troubles, the KEY for your success and happiness, then HOLD. Or do you see investing as a process? A long term process. SNDK - the best investment you might ever make... but one of dozens you will make in your lifetime- most of which you expect to profit substantially from as your contributions to your IRA, 401, etc. grow internally and are fed externally from your job? Then TAKE SOME PROFITS. You are running a business. And SNDK, even if it goes to $180/sh (pre split -g-) next year and over 100x pe, is overvalued now for a businessman. Reinvest something now in other stocks that are undervalued. 3. How much of the market has the person seen, and how long has the person been investing? It surely looks fabulous for SNDK. It's being discovered; we're seeing momo people come in (now up to 10 point swing in the stock). Nothing bad on horizon. Hard to lose money in it. Can't lose money. Riding those profits up, up , and up. Just the same thing that's happened to dozens of other stocks in past years and decades. But with those other stocks, something does change that pattern. Don't know what or when or how... but something. Lawsuits, deaths, competition, interest rates, fashion. ........... Ah well. Maybe its an age/generation thing. Youth... no fear, life is gold and golden. So HOLD. Age... cautious, suspicious, fearful. TAKE PROFITS while the taking is good. JMO, Paul Senior

To: gdichaz who wrote (6619)	8/15/1999 6:13:00 PM
From: Art Bechhoefer	Read Replies (1) \| Respond to of 60323

One obvious way of raising cash is simply to sell shares outright. Selling covered calls is, as you point out, a conservative strategy that has the effect of locking in profits but also precluding additional major gains. If an investor sold covered calls in SNDK with a striking price of 90, for example, and the stock exceded that price before the call options expired, then the stock would be called away at a price of 90. The "profit" from selling covered calls only occurs if the amount received from the sale is greater than what could have been received by waiting for the stock to exceed the striking price plus the premium. The premium is the extra that you receive for selling a covered call with an expiration date far in advance of the transaction date. To use the same example, say that a SNDK call with striking price of 90 and expiration in December or January sells for a price of, say, 10. About 7 of those points are premium. If the stock goes above 97 before the option expires, the option writer loses. But if the stock falters and stays below 90, the calls eventually expire worthless and the transaction is relatively profitable. Note that this strategy only works when you sell a call option well in advance of its expiration date, in order to take advantage of the premium.