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Technology Stocks : Rambus (RMBS) - Eagle or Penguin -- Ignore unavailable to you. Want to Upgrade?

To: MulhollandDrive who wrote (27979)	8/28/1999 4:35:00 PM
From: Jdaasoc	Respond to of 93625

bp: <<- Did you hear that AG actually lost money this past year!?>> In order to lose money in this market, one must have started to short market prematurely. All market shorters in the last 4 years have been ridiculed severely. Lawrence Tisch, who owns majority of LTR, 50% of NY Giants and 40K of RMBS stock, has been short for about 2 years now. I read Friday that Charles I. Clough Jr, Chief Investment Strategist at Merrill Lynch, is retiring at end of year. It seems that Mr. Clough, an ordained Roman Catholic deacon, has been bearish for a period of time. His views did not seem to go over very well with the majority of sell-side brokers at Merrill Lynch. If Andy Grove is is among the skeptical crowd that believes the market isn't going up 25% every year, I think he is in very smart company. I have made my decision early this year to be short the market. We are currently up about 10% in the S&P this year and I see no possibility of the market making additional headway upwards for the rest of year with Mr. Greenspan's comments on Friday. Interest rates are rising; 90% of the time market goes down under that set of circumstances. I am currently ahead over 30% for year because: I purged my portfolio of "hyped_up" stock like LU, MSFT, CPQ, PFE, & INTC at very good prices, I wrote covered calls on those stocks within reasonable P/E's like MRK, C, CMCSA and others; and have been heavily shorting S&P Index via Calls. Currently, I maxed out my buying power with short Calls and have sustained only 2 days with a maintenance problem. One day in July, S&P @ 1420 and one day last week, S&P @ 1380. You may call it risky, I call it prudent. I am so far ahead of the game this year that I have to be skeptical of any 1-2 day relief rally. The fundamentals of the market are not there and until they return, I will continue to short market with an average return of 2% per month this year on options trading. However, if market declines 10% and stays there for rest of year, I stand to profit about 4% per month until prices come to a new trading range. This belief that the market is overvalued affects my RMBS holdings as well. I currently short PUT heavily vs owning the full amount of stock that I have available in Cash. I am gracious to earn monthly premium money without having to own RMBS stock with it's wild rides downhill and uphill. PUT, especially 1 to 2 months out tend to smooth out those rough swings still while still earning good income every month. Just recently @ 82 I started to add long RMBS and look to add more when new trading range is setup were day traders who go RMBS short feel it is a good time to buy back short shares then that is good time for longs to step in. john