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

To: llwk7051@aol.com who wrote (59912)	1/5/2000 6:40:00 PM
From: Cooters	Read Replies (1) \| Respond to of 152472

<<Also, not everyone is comfortable being overweighted in one stock so you also have individuals selling as well.>> Robert, I believe this goes back to the insider sales analogy. There are a multitude of reasons why insiders sell. There is only one why insiders buy. In the case of QCOM in the 1st three trading days of 2000, I'm much more impressed by the number of buyers, who all have the same reason(logic may vary, for sure), than worried about selling pressure which(as you point out) has many strong reasons having nothing to do with the company's prospects. Cooters

To: llwk7051@aol.com who wrote (59912)	1/5/2000 6:46:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 152472

Robert, that makes sense, I got a feeling also that portfolio balancing is behind a lot of this. This reminds me of what happened with AOL last March after it had run so far, and the institutions sold it off. Lost 50-60% before it recovered and hit new highs. Hopefully Qcom won't drop as far, because it has a more certain future with its CDMA licenses, whereas AOL has to concern itself with ISP competition, broadband, and other issues. So maybe Qcom would give up half of what AOL did, 25-30%, and we already have dropped about that much, so let's hope we recover from here. Anyway, it is a gift for the small investor when large institutions sell off a promising stock like this. The problem is that few small investors take advantage of it becuase of the fear factor. Since they don't understand what is behind the price action, they assume there is something wrong with the fundamentals and sell as well. Stupid, really, but understandable from a psychological perspective.

To: llwk7051@aol.com who wrote (59912)	1/6/2000 4:31:00 AM
From: jjkirk	Read Replies (1) \| Respond to of 152472

llwk7051 <Who's behind the tech sell-off? I think it is partially portfolio balancing.> A relatively new law called the Prudent Investor Act requires trustees and other fiduciaries of private accounts to use "market portfolio techniques" to minimize risk...also assures mediocrity, or worse! If the re-balancing is not followed a la "a prudent investor", trustees are personally liable for losses incurred when things go south. Institutions are aware of this, of course. I do not remember if it applies to related parties serving without compensation in a non-professional status or not. The law was apparently written as cover for mismanagement on the part of institutions...IMHO jj