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 : How high will Microsoft fly? -- Ignore unavailable to you. Want to Upgrade?

To: t2 who wrote (29951)	9/23/1999 8:29:00 PM
From: jmac	Read Replies (1) \| Respond to of 74651

Gates' comments were made concerning the health of the company--not the company's stock price. It isn't his job iether to comment about the price of the stock. It is the market that determines that. I am sorry but I disagree with the long-term investing outlook. I will not own shares of a company where its top executive comes out and tells me I am stupid for holding shares of the company because it is overvalued.

To: t2 who wrote (29951)	9/23/1999 10:29:00 PM
From: Exacctnt	Respond to of 74651

T2, <<<If this was the reason for the selloff, then the selloff was inevitable. I am glad we got some or all of it out of the way. Makes long term decisions investment decisions a little easier.>>> When CNBC first reported Balmer's statement, there was an immediate drop of $1 in MSFT stock. My initial reaction was to say "What a dumb-ass". However, when the market swooned and investors started to attribute the decline to Balmer it became obvious to me that there something bigger happening. Sure, Balmer's comments affected MSFT's stock but that comment was just a spark that ignited a general downturn at a critical moment. It didn't help that S.G. Cowen made warning statements about Intel around the same time. Both events occurred when the Dow and S&P were at support or resistance levels. When the resistance levels were breached and no ensuing rally took place the market tanked. With the market fundamentals acting poorly, that is, the breadth and new high/lows, it didn't take much to start a decline. Unfortunately, Balmer will get the blame. Was the market overvalued? In my opinion, yes. I believe that investors that have been through prior bear markets and the occasional crash have thought so for some time. Many, including me, have stayed the course and not bailed out into cash because the market even though overvalued continued to go higher. Being overvalued doesn't necessarily mean sell. An overvalued market may continue to rise and become more overvalued. But a day of reckoning sooner or later can commence at any given time. That's why the other day I was talking about a protective strategy, selling calls and buying puts and not just on MSFT. I did not act on that strategy as the market dropped earlier than I thought. Although I consider my self a somewhat smart investor, this afternoon I acted like a deer caught in headlights.<g> But tomorrow's another day. Who knows what new trading opportunities await us. I believe highly volatile days are ahead of us, presenting very attractive trading for a nimble options player.<g> Regards,